Welcome

Congratulations on joining our winning team! We are glad you selected RC Willey as your employer of choice. With our successful business model, we have a tremendous opportunity to promote the growth and development of enthusiastic, hardworking associates.

RC Willey was founded on the principles of integrity, hard work, and satisfying each customer. Our commitment to long-term relationships with our vendors, associates and customers is a hallmark of the RC Willey way of doing business. Those who visit our company and compare us with other retailers are impressed with our beautiful and exciting showrooms, facilities, and the quality of our people.

RC Willey has a dominant market share in all product categories and a national reputation for being a premier retailer. We are an aggressive promoter, have high sales volume, and expect integrity in all that we do.

Our mission statement is: “To be America's home store of choice by listening to our customers and then providing solutions to their needs. We accomplish this by having superior products and by having every RC Willey team member contribute to a positive and memorable customer experience. We strive to make a difference in the communities in which we live and work.” We are firmly committed to become better at everything we do. This is a key factor to our past success and our bright hope in our future.

It has taken over 85 years of commitment and hard work to reach the enviable position we have in the marketplace. We’ve had an impressive history and now you have been selected to be part of our exciting future. You are now part of something very special and we wish you the very best in your new career here at RC Willey Home Furnishings.

Introduction

This associate handbook is intended only as a helpful guide. Neither this handbook nor any of its provisions are intended to bind RC Willey in any way beyond its sole obligation to pay wages earned and benefits vested through the associate’s last day worked. This handbook, its policies and guidelines (and any other policies which may be issued from time to time), do not create a contract (either express or implied) respecting any aspect of your employment (including but not limited to the procedures, terms, conditions, or duration of employment), nor do they create any other obligation or liability on the company.

We are confident that if we work together, your employment will be successful. However, because any violation of the Company’s policies or procedures may lead to discipline or even termination, you should always bring your questions or concerns to us in advance. We will do our best to answer them.

At-Will Employment

Employment at RC Willey is on an at-will basis, which means that your employment may be terminated by you or by RC Willey at any time, for any reason or for no reason, without notice and without any procedure or formality. The at-will nature of your employment is not affected by any of the guidelines contained in this handbook and cannot be changed by any oral promise or by any other writing unless duly executed by RC Willey’s Chief Executive Officer. These guidelines supersede all prior company guidelines and procedures, and all statements or commitments, oral or written, concerning the terms and conditions of your employment with RC Willey. RC Willey reserves the right to unilaterally alter, amend, replace, revoke, or deviate from any policy, practice, or procedure without prior notice, except as otherwise prohibited by law, and except for this policy of at-will employment, which can only be modified in writing duly executed by RC Willey's Chief Executive Officer.

The History of RC Willey

In 1932, while living in Syracuse, Utah, Rufus Call (RC) Willey and his wife, Helen, started the RC Willey and Son Appliance Company to supplement their family’s income. He sold Hotpoint appliances to friends, neighbors and eventually door-to-door to the farmers throughout Davis and Weber Counties, located in northern Utah.

With a lot of hard work and persistence, RC's part-time business began to grow. He was so successful that he left his job as a manager at a local utility company and set out in his red pickup truck to sell appliances full-time.

For 18 years, RC sold appliances door-to-door and developed a reputation for offering great values to his customers. In 1950, RC built a small 20 x 30 foot cinder block building for a showroom next to his home in Syracuse. Bill Child, RC’s son-in-law, started working part-time with RC Willey in 1952. Business was good and everything was going well until RC's untimely death in 1954, due to cancer. Helen Willey then asked Bill to run the business.

Bill had recently finished college with a degree in history and had planned to teach at a local junior high school. Having some familiarity with the business, he accepted the challenge and started his career in the Home Furnishings industry. He began with the small cinder block building, one full-time associate and a nine-party telephone line. His product line consisted mainly of Hotpoint appliances and Zenith televisions.

Shortly after he took over the business, Bill brought his younger brother Sheldon into the company. Together they worked and built a reputation for giving their customers honest value consisting of quality merchandise, the best prices in town and good service. Today, Bill is currently the Chairman of the Board and Sheldon has retired from the company.

RC Willey was sold to Berkshire Hathaway in May of 1995. Warren Buffet, Berkshire Hathaway’s Chairman of the Board, believes in buying great companies with solid leadership and allowing them to continue conducting business in the same manner that made them successful.

In February 2001, Scott Hymas was named the Chief Executive Officer, Jeff Child as President and Curtis Child as Chief Financial Officer. RC Willey has continued to increase its market share and expand into other states. With a firm commitment to the principles that made the company an industry powerhouse, RC Willey’s management team continues to direct the growth of the company into other markets and new business opportunities.

The company’s unique model for doing business has been very successful in each new market we have entered. With stores now in Utah, Idaho, Nevada and California, RC Willey has grown from humble beginnings to become a premier leader in the Home Furnishings industry. Our future looks brighter today than ever before!

Mission Statement

“To be America's home store of choice by listening to our customers and then providing solutions to their needs. We accomplish this by having superior products and by having every RC Willey team member contribute to a positive and memorable customer experience. We strive to make a difference in the communities in which we live and work.”

Satisfaction Guarantee

Every RC Willey professional works tirelessly to ensure customers are completely satisfied with their experience and purchases at RC Willey. And if not, we'll do everything in our power to make it right—that's the RC Willey Way and our Customer Satisfaction Guarantee.

The Willey Way

The Willey Way is a philosophy of doing business that is based on creating a positive experience at every opportunity, every day. The Willey Way applies to our interactions with everyone we come in contact with; customers, co-workers and vendors.

1. Smile!
2. Be Enthusiastic!
   Be positive, look people in the eye and speak up.
3. Be Knowledgeable!
   Be smart on all aspects of our products, services and your specific responsibilities.
4. Take Ownership!
   Make commitments, follow through, keep customers informed of progress and "own the problem" until it is solved.
5. Empathize!
   Listen and strive to understand customer’s desires, needs, concerns and expectations.
6. Show Respect!
   Do not speak poorly of customers, associates, partners or products.
7. Satisfy!
   Exceed customer expectations and get to "yes."
8. Contribute!
   Proactively suggest ideas to make the way we do business better for customers, suppliers, partners and associates alike.
9. Strive For Success!
   The better you perform, the better the company performs- which benefits us all.
10. Thanks! Your job is not done until you say "Thank you for shopping at RC Willey" and ask "Is there anything else I can do for you?"

We expect all of our associates to make the Willey Way principles part of their behavior while they interact with others here at RC Willey.

We also expect all of our associates to treat each customer with a commitment to follow the company’s mission statement and satisfaction guarantee.

Honesty Policy

We believe that honesty and integrity are very important in all aspects of our business. We expect and require our management team to always strive to be fair, honest, and have integrity in all of our business dealings with suppliers, customers and associates.

This has always been the way we have conducted business. We have built an excellent reputation in the industry for being fair and honest, with character above reproach. We operate in this manner because of our deep conviction that it is the only proper code of ethics one should follow. Therefore, we expect all associates to uphold this tradition and standard of fairness, honesty, and integrity.

Unfortunately, there have been associates who have taken small amounts of money, supplies or even merchandise from another associate or the company and somehow justified their actions. When something is taken without permission, it is theft and will be treated as such. Working less time than you are paid for is also considered theft. We do not understand why anyone would steal from a co-worker or from the company that provides a living for associates and their families. Theft will not be tolerated, and in addition to termination of employment, violators may be prosecuted to the full extent of the law.

We all have a responsibility to our fellow associates and to the company when we become aware of dishonesty or theft. No one wants to work with a dishonest person or a thief. If you notice any inappropriate conduct, you should notify the Security and Loss Prevention Representative in your area or the Corporate Loss Prevention Manager directly at (801) 461-3985. We will make every effort to keep your identity confidential. You may also qualify to receive a cash reward if the reported theft meets established criteria.

You are all part of our great team and share in the profits of our company. When someone steals from RC Willey, it affects the profit sharing for each of us. A thief hurts us all! Let’s work together to uphold honesty and integrity in all aspects of our company.

RC Willey Benefit Program

RC Willey offers a generous and complete benefits package that consists of the following (more detailed information can also be found in the Benefits section on our company’s website):

• Health Insurance benefits that include medical, dental and vision insurance.
• RC Willey pays a very high percentage of the medical and dental premiums.
• Both of our medical and dental plans provide peace of mind for our associates by paying for preventive screenings and providing a safety net for unforeseen healthcare needs.
• Healthcare funding and reimbursement options that include Health Savings Accounts, Flexible Spending Accounts, Limited Purpose Flexible Spending Accounts, and Dependent Care Flexible Spending Accounts, which help associates save money with company contributions or savings with tax favored accounts.
• Company-paid term life and disability insurance, which includes associate, spouse, and children basic term life, basic accidental death & dismemberment, and long-term disability.
• Additional voluntary insurance options include supplemental life insurance.
• Company-paid wellness and Employee Assistance Programs that include associate and spouse wellness initiatives.
• We also help associates prepare for retirement by offering a 401(k) plan, which has a generous company match.
• Associates may receive a portion of the company’s profits through annual profit sharing.
• RC Willey offers a generous associate purchase plan that gives significant discounts on the products we sell.

Eligibility for Insurance Coverage

• All full-time associates (with a schedule of at least 30 hours a week) are eligible for insurance effective the 1st day of the month following 60 days of employment.
• Associates that experience a status change from part-time or on-call to full-time status will be eligible for insurance coverage effective the 1st day of the month following 60 days from date of new status change.
• If an associate does not enroll during the initial new hire enrollment period they will need to wait until open enrollment, or until a qualifying life event (must notify Human Resources within 30 days).
• An associate can add their spouse and children (up to age 26) to insurance.
• All benefit eligible associates must elect or decline benefits within 30 days of hire or change of status.
• Open enrollment changes and elections will be effective October 1st of each year.
• Associates cannot cancel medical, dental, or vision benefit elections during the plan year unless they experience a qualifying life event.

Medical and Dental Insurance

All full-time associates are eligible for our group health and dental insurance. Associates who enroll will begin coverage on the 1st day of month following 60 days of employment (or change of status).

The associate and RC Willey share the cost of the monthly premiums, with RC Willey paying the largest portion.

Eligibility for Medical Insurance

New Hires:

• Associates do not have coverage as of their date of hire.
• If associates are hired to work full-time, associates and their dependents (including children under age 26) will be eligible for medical insurance as of the 1st day of the month following 60 days of employment.
• In order to maintain medical benefits, associates must average 130 hours per month and work at least 1560 hours over a period of 12 months (as described in more detail in the ACA measurement policy contained in this handbook).

Current Associates:

• RC Willey will track associates’ hours over a 12-month period each year (August 1st through July 31st). Associates and their dependents (including children under age 26) will be eligible for medical benefits if, at the end of that period, they have worked on average at least 130 hours per month.
• This means associates must work at least 1560 hours in those 12 months.
• If associates are eligible and enroll, their medical benefits will be effective for 12 months starting October 1st through September 30th.
• This process will repeat each year.

If associates have questions, or if they would like a copy of the full eligibility and measurement guidelines, please contact the Human Resources department or see the full policy at the end of this handbook.

The benefit plan year begins October 1st and ends September 30th.

Associates leaving the company will remain enrolled on the health insurance plans they have elected through their last day of employment.

The terms of all benefit programs are established and governed by the respective policy or plan. The information is intended only to identify the general benefits available, but does not establish any of the terms or conditions of benefit programs. Any specific questions regarding the terms and conditions of benefit programs should be referred to the Human Resources department.

Qualifying Life Events

If associates have a qualifying life event, they have 30 days from the time of the event to change or update insurance benefits. Associates will be required to provide verification to add or remove coverage.

You can obtain/change coverage or add/remove your dependents for the following reasons:

• Marriage
• Divorce, legal separation or annulment
• Birth/adoption, or placement for adoption
• Death of a spouse or dependent
• Loss of other health care coverage
• Health benefits become available through spouse’s employer or spouse’s open enrollment

Changes not made during the 30-day period will be postponed until open enrollment (Medicare, Medicaid, and CHIP have a 60-day period).

Rehire Eligibility Rules

With a break in service (not employed at RC Willey) of:

• 4 weeks or less
• Treat as an ongoing associate, if hours gone are less than hours of service prior to termination then associate would qualify for group medical and dental benefits effective 1st of the month following rehire date.
• More than 4 weeks and up to 13 weeks
• If hours gone are less than hours of service prior to termination, then associate would qualify for benefits effective 1st of the month following rehire date.
• If hours of break in service are more than hours of service worked prior to termination then associate is eligible for benefits 1st of the month following 60 days of employment.
• More than 13 weeks
• Considered a new hire, eligible for benefits effective 1st day of the month following 60 days of employment.

Flexible Spending Account (Section 125 Plan)

RC Willey offers a Flexible Spending Account. This plan allows associates to pay for qualified healthcare expenses and dependent care expenses with pre-tax dollars. Associates do not need to participate in RC Willey’s medical insurance plan to take advantage of the Flexible Spending Account. Associates may enroll in the flexible spending plan as a new hire or during open enrollment.

Company-Paid Life Insurance

All full-time associates are automatically enrolled in the company-paid life insurance and accidental death & dismemberment plan. This policy will pay up to one times the associate’s annual earnings. Associates also have a policy on their spouse and dependent children (up to age 26).

Company-Paid Long-Term Disability Insurance

RC Willey provides all full-time associates with a long-term disability insurance policy. There is no cost to the employee for this coverage. Associates are automatically enrolled. If associates become disabled for more than 90-days, they may receive a percentage of their salary each month.

Paid Family Leave Insurance

For California workers covered by State Disability Insurance, Paid Family Leave (PFL) insurance provides up to six weeks of benefits for individuals who must take time off to care for a seriously ill child, spouse, parent, parent-in-law, grandparent, grandchild, sibling or registered domestic partner, or to bond with a new minor child entering the family through birth, adoption, or foster care placement. An associate may make a claim any time after being employed.

PFL is a wage-replacement benefit; it does not entitle you to time off. Please see the “Family and Medical Leave” section for more information.

You may be required to use up to two weeks of vacation before becoming eligible for PFL benefits. The EDD, not RC Willey, determines your right to these benefits. Please contact Human Resources for more information.

Other Benefits

A variety of other benefits are available for purchase, including vision coverage and supplemental life insurance.

Information about all insurance benefits is on the company’s website. All benefits are subject to change or may be discontinued. Please see plan documents for full benefit detail. Associates should look for updates on the corporate portal at www.rcwilley.com/hr.

Employee Assistance Program (EAP)

The Employee Assistance Program (EAP) is a benefit provided at no cost to associates and their dependents. The EAP service provides immediate help on how to handle many of life’s challenges, counseling sessions when needed, and educational materials concerning work/life balance, all within a confidential environment.

Assistance can be provided to help deal with such issues as:

• Marital and Family Disputes
• Legal Problems
• Substance Abuse
• Stress Management
• Depression
• Financial Difficulties

An associate with questions or concerns about substance dependency or abuse is encouraged to call the EAP and Human Resources. In order for the associate to avoid disciplinary action, the associate must come forward prior to being notified of selection for a drug or alcohol test, or a work related accident, or must proactively initiate the discussion related to the dependency or abuse (i.e., before the Company suspects, raises or investigates the issue).

Any costs associated with extended use of the EAP will be the responsibility of the associate. 

Information about the Employee Assistance program is available on the Corporate Portal.

Personal Information Changes

When an associate has a change of name, address, telephone number, marital status, beneficiary, number of dependents or other status changes, it is the associate’s responsibility to contact the Human Resources department to ensure the accuracy of the associate’s records and to make necessary benefit changes within 30 days.

COBRA

The Federal Consolidated Omnibus Budget Reconciliation Act (“COBRA”) gives associates and their qualified beneficiaries the opportunity to continue health insurance coverage under RC Willey’s group health plan when a “qualifying event” would normally result in the loss of eligibility. Some common qualifying events are: reduction in hours of employment, resignation, termination of employment, or death of an associate; an associate’s divorce or legal separation; and a dependent child no longer meeting eligibility requirements.

Under COBRA, the associate/beneficiary pays the full cost of coverage at RC Willey’s group rates plus an administration fee. RC Willey provides each eligible associate with a written notice describing rights granted under COBRA when the associate becomes eligible for continued coverage. The notice contains important information about the associate’s rights and obligations.

California Extension of COBRA Coverage

California associates may be eligible for extensions of standard COBRA Continuation Coverage. In some cases, continuation Coverage may continue for up to a total of 36 months. Please see your Human Resources Representative for additional information.

HIPAA Privacy Policy

RC Willey complies with the Health Insurance Portability and Accountability Act (HIPAA) and has implemented the following Privacy Policy to define what personal health information our company has and how it will be handled and protected.

• Protected Health Information (PHI) is defined as “any individually identifiable health information that is communicated, stored or transmitted in any form.”
  • This includes: specific health information given to health care providers, insurance companies, receipts for services rendered, information for reimbursement of medical expenses, etc.
  • This does not include: information received as part of an application for an FMLA leave, information communicated to a supervisor indicating why an associate cannot come to work, DOT required medical exams and information obtained to process and manage a worker’s compensation claim.
• Our policy is to receive minimal PHI when circumstances require for management of the plan and reimbursement of qualified medical expenses.
• Our privacy specialist is the Director of Human Resources.
• Requests for reimbursements through the Flexible Spending Accounts will only be handled by those who have been HIPAA trained and who are required for processing the reimbursement. The records (digital and paper) will be secured and unavailable from associates that are not required to handle and process the requests for reimbursements.
• Associates have all of the rights regarding their PHI afforded them under the HIPAA regulations.
• Other than those mentioned above, no other associate is allowed to have any associate’s PHI without specific written authorization. Any associate obtaining or using any unauthorized PHI will be subject to disciplinary action up to and including termination.

Combined Retirement Investment Savings Plan (CRISP)

The company sponsors a retirement plan designed to assist associates in their retirement.

401(k) Plan

In order to help associates initiate personal responsibility for their financial future, RC Willey sponsors a 401(k) plan. The plan allows associates to make strategic decisions on available investment funds. The company will also match a portion of the money deferred by associates. The interest and earnings, if any, from your funds will be credited to your account.

Eligibility: Associates must be 21 years of age and may enroll after 6 months of employment. Any contributions will be made during the first pay period following enrollment.

When an associate becomes eligible to participate in the plan, they will be provided with an enrollment kit as well as instructions on how the plan works. For additional information regarding eligibility, vesting and general investment information contact the CRISP coordinator at (801) 461-3905.

A copy of the full plan document is available from the Chief Financial Officer. The summary plan description is intended only to summarize benefits. Should a discrepancy exist between this description and the full plan document, the plan document will prevail.

Receiving plan distributions while working for another Berkshire Hathaway company may cause you to incur adverse tax consequences.

Associates also have an option of contributing to a Roth 401(k) through our retirement savings plan. This allows associates to contribute after-tax dollars and then withdraw tax-free dollars from the account after retirement.

Profit Sharing Bonus

In the past, RC Willey paid a bonus to associates from the profits of the company and hopes to be able to do this in the future. We should all understand that each of our efforts directly affects the profitability of the company and also the possibility that a profit sharing bonus will be paid. The payment of a profit sharing bonus is at the full discretion of the Board of Directors. If a profit sharing bonus is paid, associates must be currently employed with RC Willey at the time of payment to be eligible. RC Willey also takes into account the length of time an associate has been employed, the number of hours worked during the year, the associate’s grade level and other criteria as determined by the Board of Directors.

Years of Service Recognition

To recognize associates’ contribution to the company, at five year intervals associates may receive a Years of Service Recognition award in the form of a gift card. This is an additional way that RC Willey expresses gratitude for the commitment and effort associates give customers and fellow associates.

Retirement Policy

• The associate must be at least 59½ years of age.
• The associate must be retiring, not leaving the company for other employment.
• The associate must have been full time with RC Willey for at least the last 10 consecutive years.

To recognize and appreciate an associate's career commitment to the company, RC Willey provides a retirement gift card to qualifying associates.

Associate Purchase Plan

Eligibility

All full-time, part-time, and on-call associates are eligible to participate in the Associate Purchase Plan following 6 months of employment. Retired associates who meet the Retirement qualifications may also be eligible for discounts. Associate purchase prices on most products will be figured automatically based on the associate’s hire date and employment status.

Length of service:	 3 months - 1 yr	 1+ - 5 yrs	 5+yrs
 Floor Covering	 Cost+22%	 Cost+17%	 Cost+12%
 Appliance/Electronics	 Cost+22%	 Cost+12%	 Cost+7%
 Furniture	 Cost+32%	 Cost+17%	 Cost+12%

On-call associates receive the 3 mo-1 yr discounts. Retired Associates receive -Floor Covering = Cost + 20%, Appliance/Electronics = Cost + 15% and Furniture = Cost + 20%.

Warranty

• 14-day satisfaction guarantee does not apply to associate purchases.
• Associate purchases under this program include only the manufacturer’s warranty.

Warranty Cost (all eligible participants)

• Extended Warranty (Electronics/Appliances) - Retail less 30%
• Fabric Protection - Retail less 30%
• Leather Protection - Retail less 30%

The following information has been compiled as rules for associates to follow in making their purchases:

• Merchandise must be for the associate’s personal/household use only. It is not appropriate for parents to purchase merchandise from RC Willey through a child's associate purchase discount, even if they live in the same household. The Associate Purchase Plan is also not to be used for business interests (e.g., rental properties, other business ventures, etc.).
• Associates may make one gift purchase (one item or approved kit sku) for an immediate family member (parents, siblings, children) each calendar year under the plan. This gift must be paid for by the associate, not by the recipient.
• Merchandise purchased for special sales will not be available for associate purchase until after the sale.
• Associate Purchase Plan discounts do not apply to discounted items.
• No additional discounts, customer promotions, coupons, or special credit programs may be applied to an associate purchase under the plan, other than the 90-days same-as-cash policy.
• Inquiries, purchases, and will-call pick-ups are not to be done by associates on Saturdays or holidays.
• Associates should not seek product information from a sales associate without first identifying themselves as an RC Willey associate.
• Associates are not permitted to write up their own purchase ticket or pull their own merchandise.
• Associates must arrange for their own delivery or pay the current associate delivery charge for company delivery.
• Associates cannot use a credit card (other than their RCW credit card) to pay for discounted purchases under this plan.
• The Credit Department must approve any credit purchase in advance.
• Associates who are not current or who have defaulted on credit purchases will not be permitted to participate in the Associate Purchase Plan until their credit account is current. This includes cash and/or non-RC Willey credit purchases.
• Associates who misuse this plan may lose the privilege for a period of time, lose it altogether, and may be subject to disciplinary action up to and including termination.

Additional Benefits

After six months of employment, a 5% discount will be given to any immediate family member of an RC Willey Associate. An immediate family member would include: father, mother, sister, brother or child. The 5% discount does not apply to advertised leaders, computer products and most electronic games or accessories.

The Associate Purchase Plan is a privilege. Associates are expected to be courteous and to follow the rules listed above when making their purchases. Behavior or actions contrary to the rules listed may result in disciplinary action that may include loss of purchase privileges, repaying the discounted amount and/or disciplinary action up to and including termination.

Tuition Reimbursement Program

Currently, RC Willey offers a tuition reimbursement benefit of up to $2,000 per calendar year and up to a lifetime maximum of $8,000 for tuition expenses. As part of this program, associates can be reimbursed for courses that are required for a degree or extended degree that is from an institution accredited by the US Department of Education and/or acknowledged by the American Council on Education. This program is subject to change or termination at any time. Please see the Company portal for more information regarding this program.

Paid Leave Time

Vacation

Vacation is provided with pay for all full-time associates.

Vacation leave for salary and hourly associates is paid at the associate's wage level when the vacation is actually taken.

Upon termination or when moving from full-time to part-time or on-call status, all accrued but unused vacation will be paid out to the associate, at the base rate at the time of termination.

Vacation time must be earned before it is used. Advanced approval must be given to take vacation time. Time taken in excess of vacation accrued or without permission will be considered leave without pay and may lead to disciplinary action and possible termination.

To ensure sufficient staffing requirements, vacation must be scheduled and approved in advance with supervisors. Vacation requests may be denied if requested dates conflict with other scheduled vacations and the needs of the department, or if the associate does not have enough accrued vacation.

Vacation Accruals

Hourly Associates (including Sales Associates):

Years of Service	Accrual Per Pay Period	Annual Accrual	Maximum Accrual
Less than 1 year	1.67 hours	40 hours	50 hours
1+-10 years	3.33 hours	80 hours	100 hours
10+ years	5 hours	120 hours	150 hours

All new full-time associates or associates moving from temporary, on-call or part-time status to full-time status, must complete one year of work to be eligible for the vacation benefit. At the end of an hourly associate’s first year of employment, approximately 40 hours of vacation will be available for use (as long as the associate has been working a full-time schedule during the year). Even though a vacation amount may show up as an accrual on the associate’s pay stub during the first year, it cannot be used until after one year of employment. All vacation leave must be entered into the computer system and is then subject to approval by the supervisor before it is paid.

Hours are only accrued for the actual hours worked, and accruals may fall below the one, two, or three week yearly accruals depending on the number of days that the associate is off work (vacation does not accrue during sick leave or other leaves of absences). The maximum number of hours that may be applied towards figuring vacation accruals for a week is 40 regular hours.

For Sales Associates, the rate at which vacation is paid will be the average hourly rate earned during the previous calendar year at the time the vacation is taken. This is calculated by taking the wages earned for the previous year and dividing it by the hours worked (not to exceed 2,080 for the year). Vacation will be paid in the pay period used.

Hourly associates in pay grade 8 and higher receive the same accrual schedule as salaried associates.

Salary Associates (Store Sales Management included)

Salary associates begin accruing vacation on their first day of employment at the following rates:

Years of Service	Accrual Per Pay Period	Annual Accrual	Maximum Accrual
0-4 years	3.33 hours	80 hours	100 hours
4+ years	5 hours	120 hours	150 hours

Other Associates (Delivery, Customer Service Technicians, Home Theater Installers and Estimators)

Years of Service	Accrual Per Pay Period	Annual Accrual	Maximum Accrual
Less than 1 year	1.67 hours	40 hours	50 hours
1+-10 years	3.33 hours	80 hours	100 hours
10+ years	5 hours	120 hours	150 hours

The rate at which vacation is paid will be the average hourly rate earned during the previous calendar year at the time the vacation is taken. This is calculated by taking the wages earned for the previous year and dividing it by the hours worked (not to exceed 2,080 for the year). Vacation will be paid in the pay period used. Associates must schedule any vacation in advance with their supervisor.

Vacation payments may be paid in the following way: 1) taken and requested with ‘Y’option to pay the next pay period. 2) taken and requested with ‘N’ option to defer to August on a separate vacation check or 3) unused vacation hours will be paid down to the maximum carryover at the end of the vacation year. The vacation period is August 1st to July 31st.

Holidays

All full-time associates (with the exception of sales associates) are eligible for holiday pay for the following holidays:

• New Year's Day 
• Memorial Day 
• Independence Day 
• California Holiday (March 31) 
• Labor Day
• Thanksgiving Day*
• Christmas Day*

* Stores will be closed on these holidays

If a full-time associate is required to work on one of the above holidays, the associate will be paid for eight hours of holiday pay plus their regular pay for the actual number of hours worked that day. An associate must be employed the day before and the day after the holiday. To handle the increase in business, work schedules may be adjusted during the week of a holiday.

Part-time associates will be paid holiday pay of up to 6 hours, for each hour worked on Memorial Day and Labor Day (in addition to their regular earnings for that day).

Sales associates working a holiday may schedule another day off with their supervisor within 15 days of the holiday.

Salary associates that work on a holiday may arrange with their supervisor for another day off to be taken within 15 days of the holiday.

Associates who are on an unpaid leave (medical or personal) during a holiday are not eligible for holiday pay.

Sick Leave

Three Day Sick Leave for Full-Time Hourly, Salary and Other Associates

This paid sick leave will be available to all Full-Time associates who work at least 30 days in a year from the time of hire in California. Effective on their hire date, the company will provide eligible associates with three days or 24 hours of sick leave, and again each subsequent year on their anniversary date ( for those hired before July 2015, it will be applied in July). The full amount will be placed in the payroll system. All Full-Time associates who qualify may begin using their sick leave on their 90th day of employment. Unused paid sick time will not carry over from year to year.

Sick leave will be paid at the rate required by law. Sick leave is not considered hours worked and will not be counted in the calculation of overtime. Associates who are rehired within one year of separation from employment may be eligible to have their sick leave balance restored and begin using sick leave from the time of reinstatement if they have met the initial 90 day waiting period.

California Sick Leave Accrual for Part-Time Hourly Associates

This paid sick leave will be available to all Part-Time Hourly associates who work at least 30 days in a year from the time of hire in California. PT-Hourly associates will accrue sick leave from the commencement of employment and will earn one hour of leave for every 30 hours worked, up to a maximum of 48 hours or 6 days per year. Associates may use up to 24 hours (or three days) of accrued leave per year. All PT-Hourly associates who qualify may begin using their sick leave on their 90th day of employment. Sick leave will be paid at the rate required by law. Sick leave is not considered hours worked and will not be counted in the calculation of overtime.

Part-Time associates who are rehired within one year of separation from employment may be eligible to have their sick leave balance restored and begin using sick leave from the time of reinstatement if they have met the 90 day waiting period.

California Sick Leave (for all qualifying associates)

May be used for the following reasons:

For the diagnosis, care, treatment of, or preventative care, for the associate’s own health condition or that of a qualifying family member. Qualifying family members include an associate’s spouse, registered domestic partner, child, parent, grandparent, grandchild, or sibling. Sick leave can also be used if the associate is a victim of domestic abuse, sexual assault, or stalking or for certain related absences, or other reasons permitted by law.

California Sick leave is only to be used for the reasons described above. If an associate is unable to attend work due to the reasons described, the associate must notify their supervisor of the need for time off as soon as possible, preferably before or at the beginning of the scheduled shift. It is unacceptable to contact a co-worker, have another person call for the associate, leave a message with the telephone operator or another person, or to ask the operator to notify the supervisor of the associates’ illness. The associate must contact their supervisor directly. Similarly, the associate must contact their supervisor as soon as possible if the associate is unable to arrive at work on time or needs to leave early for one of the described reasons. 

Sick leave must be earned before it is used. Sick leave must be approved before it is paid. Sick leave for Full-Time Hourly and Salary associates is paid based on the associate's wage level when the leave is actually taken. Sick leave hours do not accrue during unpaid leaves of absence. To receive holiday pay associates must work their scheduled shift before and after the holiday. The company does not pay associates for unused sick time upon separation of employment.

Additional Company Sick Leave

For California Full-Time associates, additional company sick leave will accrue at the rate of two hours per month when working a 40 hour a week schedule. The maximum carry over is 480 hours. While new associates will accrue sick leave during their first 90 days, they may not use it until after 90 days of employment. No other employees accrue additional sick leave.

This additional sick leave is intended to be used for personal illness or for the care of an associate’s spouse, registered domestic partner or dependents that live in the associate’s residence. This sick leave rate varies based on the whether the associate is hourly, salary, or other and according to applicable law.

Sales associates are paid sick pay beginning the third consecutive day of illness and are not compensated for the first two days.

Responsibilities for Associates Using Sick Leave:

If an associate is unable to attend work for reasons covered by these policies, the associate must notify their supervisor before if possible or at least at the beginning of the scheduled shift. It is unacceptable to contact a co-worker, have another person call for you, leave a message with the telephone operator or another person or ask the operator to notify the supervisor of your illness. The associate must contact their supervisor directly. Similarly, the associate must contact their supervisor as soon as possible if the associate is unable to arrive at work on time or needs to leave early because of reasons covered by these policies. If an associate fails to contact their supervisor, the associate may be subject to disciplinary action up to, and, including termination.

It is the associate’s responsibility to manage their schedule and meet their work commitments. An associate may not take sick leave that they have not accrued. If an associate does not have any sick leave available and needs time off for a reason covered by this policy, please see the “Leaves of Absence” section of this handbook.

Family and Medical Leave

Under the federal Family and Medical Leave Act (“FMLA”) and the California Family Rights Act (“CFRA”), you may be eligible to take up to 12 weeks of Family and Medical Leave in a 12-month period.

Associates who are eligibile

You are eligible for Family and Medical Leave if:

• You have worked for the Company for at least 12 months, and for at least 1,250 hours in the last 12 months; and
• You are employed at a worksite with 50 or more employees within a 75-mile radius. (If you aren’t sure, contact Human Resources.)

The 12 weeks may be taken in a rolling 12-month period measured forward from the date you take Family and Medical Leave.

Although this policy provides general information about Family and Medical Leave, Human Resources can provide you with additional information at your request. Human Resources will also provide more information if you request leave for a qualifying reason. 

Use of Family and Medical Leave

You may take Family and Medical Leave for the following reasons: 

• The birth, adoption, or foster care placement of your child (“bonding” leave);
• To care for a covered family member (spouse, child, or parent) with a serious health condition; or
• Because of your own serious health condition.

Below, we explain what some of these terms mean. But generally, if you have a new child or you or a family member are seriously ill, you will probably be able to take Family and Medical Leave for those reasons (provided you are eligible).

A serious health condition is an illness, injury, impairment, or physical or mental condition that involves either a stay in a medical care facility, or continuing treatment by a health care provider for a condition that either prevents you from performing the functions of your job, or prevents your covered family member from working or participating in school or other daily activities. 

The continuing treatment requirement may be met by a period of incapacity of more than 3 consecutive calendar days combined with at least 2 visits to a health care provider or 1 visit and a regimen of continuing treatment, or incapacity due to a chronic condition. Other conditions may meet the definition of continuing treatment. (Pregnancy-related disabilities are generally considered serious health conditions by the FMLA, but not the CFRA. Please refer to our “Pregnancy Disability Leave, Reasonable Accommodation, and Transfer” policy for more information about time off for pregnancy-related disabilities.) 

You can find additional information about these terms and the other definitions that apply to this policy in the California Code of Regulations (2 CCR section 11087) and the Code of Federal Regulations (29 CFR section 825 et. seq.), both of which are available online. Or, you may speak with Human Resources. 

Intermittent Leave

You may take leave for a serious health condition intermittently (in separate blocks of time) or on a reduced schedule (reducing your usual hours per workweek or workday), if medically necessary. 

You may also take leave for the birth or placement of a child (“bonding”) in 2-week increments; and in smaller increments (at your request) on 2 occasions. But, you must conclude bonding leave within 1 year of the birth or placement of the child.

If you take intermittent or reduced-schedule leave for planned medical treatment, the Company may temporarily transfer you to an available alternative position that better accommodates your leave and has equivalent pay and benefits.

Unless otherwise prohibited by law, the Company may reduce your salary during unpaid intermittent leave, if applicable.

Notifying the Company if You Need Leave

You must give us at least 30 days’ notice of the need for foreseeable leave, preferably in writing. If that is not possible—for example, because you have a medical emergency—please let Human Resources know as soon as possible. If you have treatment or procedure planned, please consult with Human Resources first about the dates. 

We understand you may prefer to keep some details private. However, you must give Human Resources enough information to determine if the leave will qualify as Family and Medical Leave, and the anticipated duration and timing of the leave. For example, sufficient information may include that you are unable to perform job functions, your family member is unable to perform daily activities, or the need for hospitalization or continuing treatment by a health care provider. You must also inform Human Resources if the requested leave is for a reason for which Family and Medical Leave was previously taken or certified.

After Requesting A Leave

The Company will notify you whether you are eligible for Family and Medical Leave and, if so, will provide additional information about the leave and your rights and responsibilities. If you are not eligible, we will explain why. The Company will also notify you when leave will be designated as Family and Medical Leave and the amount of leave that will count against your leave entitlement. 

Do I Need to Provide a Medical Certification?

For your own serious health condition or that of a covered family member, you may be required to provide a medical certification from the relevant health care provider, as permitted by law. Human Resources provides a form for this purpose. 

Pay During A Qualified Leave?

Family and Medical Leave is unpaid by the Company, although you may be eligible for wage-replacement benefits, such as workers’ compensation or disability benefits. You may also use any accrued, unused paid time off (subject to the rules of the applicable policy). When you are not receiving any wage-replacement benefits, the Company may require you to use sick leave or vacation. But, using paid leave won’t extend your leave, and you cannot receive more than 100% of your pay.

Continuation of Company Benefits

While on Family and Medical Leave, the Company will maintain your existing health benefits (if applicable) as if you remained working. If you don’t return to work when the Family and Medical Leave is over, you may be required to reimburse the Company for the cost of health benefit premiums.

During Family and Medical Leave, you will stop accruing paid time off.

Please contact Human Resources if you have any questions about other benefits during Family and Medical Leave.

Returning from a Family and Medical Leave

Usually, following Family and Medical Leave, you will be reinstated to your original job or to an equivalent job. Also, you will not lose any benefits that accrued prior to the start of your leave.

You must notify the Company when you are able to return to work. If you take another job while on Family and Medical Leave, or if you do not return at the conclusion of leave without obtaining additional authorization for your absence, we may assume you have voluntarily resigned your employment.

Unlawful Acts by Employers

The FMLA make it unlawful for any employer to interfere with, restrain, or deny the exercise of any right provided under the FMLA, or discharge or discriminate against any person for opposing any practice made unlawful by the FMLA or for involvement in any proceeding under or relating to the FMLA.

Enforcement

An employee may file a complaint with the U.S. Department of Labor or may bring a private lawsuit against an employer. The FMLA does not affect any federal or state law prohibiting discrimination, or supersede any state or local law or collective bargaining agreement which provides greater family or medical leave rights.

Servicemember Family and Medical Leave

In addition to time off as described in the “Family and Medical Leave” policy above, the FMLA provides eligible employees time off for certain absences related to a covered family member’s service in the Armed Forces (“Servicemember FMLA”). Except as mentioned below, the “Family and Medical Leave” policy applies to Servicemember Leave.

Other leave of absence laws, like the CFRA, may also apply to Servicemember FMLA. In those circumstances, the time off under other leave laws and Servicemember FMLA run concurrently (i.e., at the same time).

Eligiblity

To be eligible for Servicemember FMLA, you must meet the eligibility requirements described in the “Family and Medical Leave” policy, above. If you are eligible, you may take Servicemember FMLA as follows:

• Up to 12 weeks of leave in a 12-month period for a “qualifying exigency” (certain events related to a spouse, parent, or child’s call to active military duty); or
• Up to 26 weeks of leave in a 12-month period to care for a spouse, parent, child, or next of kin who is a “covered service-member” with a “serious illness or injury” incurred in the line of duty.

The following definitions explain when you may qualify for Servicemember Leave. You may also speak with Human Resources if you have questions about these definitions or your eligibility. But, generally, if you have pressing personal business to attend to because a family member is deployed overseas, or if your family member is injured or seriously ill as a result of active military service, you will probably be eligible for Servicemember FMLA (provided you meet other eligibility requirements).

• “Qualifying exigencies” may include attending military events, arranging for alternate childcare, addressing certain financial and legal arrangements, attending certain counseling sessions, and attending post-deployment reintegration briefings.
• A “covered servicemember” with a “serious illness or injury” is:
• A current member of the Armed Forces, including a member of the National Guard or Reserves, who is undergoing medical treatment, recuperation or therapy, is otherwise in outpatient status, or is otherwise on the temporary disability retired list, for a serious injury or illness;* or
• A veteran who was discharged or released under conditions other than dishonorable at any time during the five-year period prior to the first date the eligible employees takes FMLA leave to care for the covered veteran, and who is undergoing medical treatment, recuperation, or therapy for a serious injury or illness.* For a veteran discharged prior to March 8, 2013, the period between October 28, 2009, and March 8, 2013, does not count toward determination of the five-year period.

*The FMLA definitions of “serious injury or illness” for current servicemembers and veterans are distinct from the FMLA definition of “serious health condition.”

Notifiying the Company For Needed Leave

Please provide as much advance notice as practicable of your need for Servicemember Leave. If the leave is for the planned medical treatment of a covered servicemember, you must provide 30 days’ advance notice, if you can. Otherwise, you must provide notice as soon as you can.

Necessary Information Required for Verification or a Medical Certification

For leave for a qualifying exigency, the Company may require you to provide a copy of the covered servicemember’s active duty orders or other documentation. The Company may also require you to provide a certification verifying eligibility for leave, or may contact the Department of Defense or an applicable third party for verification purposes.

For leave to care for a covered servicemember, the Company may require you to provide a medical certification from an authorized health care provider verifying certain information regarding the covered servicemember and his or her injury or illness. You can obtain more information about the certification and verification requirements from Human Resources.

Pregnancy Disability Leave, Reasonable Accommodation, and Transfer

If you are disabled by pregnancy, childbirth, or a related medical condition, you may be entitled to a pregnancy disability leave (“PDL”), reasonable accommodation, or transfer. Examples of pregnancy-related disabilities include prenatal or postnatal care; doctor-ordered bed rest; gestational diabetes; pregnancy-induced hypertension; preeclampsia; childbirth; postpartum depression; loss or end of pregnancy; or recovery from childbirth or loss or end of pregnancy. 

Although this policy provides information about these rights Human Resources can provide you with additional information at your request. 

Notifying the Company When a PDL, Accommodation or Transfer as Needed

As soon as you know that you may need PDL, a reasonable accommodation, or transfer, please let Human Resources know. It will help the department to plan and make the transition smooth for you and your co-workers. If you have planned appointments or medical treatment, please consult with your manager first, so they can do their best to coordinate schedules. In most cases, we expect you to notify Human Resources at least 30 days in advance.

We understand that emergencies come up. When that happens, please let Human Resources know as soon as you can.

Amount of Leave

You may take up to 4 months of PDL (based on the number of days you would normally work in a 4-month period). You may take the leave “intermittently,” meaning in small blocks of time, if your health care provider determines it is necessary (for example, to attend medical appointments), in increments of no less than 1 hour.

Transferring

You may temporarily transfer to a less strenuous or hazardous position or duties if your health care provider determines it is medically advisable, and it can be reasonably accommodated. However, it is generally not reasonable for the company to transfer or promote you to a position for which you are not qualified, create a new position, discharge another employee, or transfer another employee with more seniority.

Also, we may require you to transfer temporarily to another position, if your health care provider determines you need to take leave intermittently or on a reduced schedule, and the other position better meets your and the company needs. Of course, the alternative position must meet your needs, and you must be qualified for it. Even though you will receive equivalent pay and benefits, you may not have equivalent duties.

Reasonable Accommodation

A “reasonable accommodation” is a change in the work environment or the way things are done that enables you to perform the essential (i.e., most important) functions of your job. The company may provide a reasonable accommodation if your health care provider certifies that it is medically advisable. For example, we may modify work practices, rules, or existing job duties, or provide furniture of other modifying equipment or devices. 

The right to an accommodation is separate from your right to leave. But, if you require time off as a reasonable accommodation (for example, you are a full-time employees and need to work part-time), it may be counted as PDL and reduce your four-month leave entitlement.

Medical Certification

If you need PDL, reasonable accommodation, or transfer, the company may require you to provide a certification. Human Resources can give you a form for this purpose. Also, before you return from PDL, we may require you to provide a release to return to work from your health care provider.

Pay During Leave

PDL is unpaid by the Company, but you may use any accrued, unused paid time off before taking the remainder of your leave without pay. You can also contact the EDD to find out whether you are eligible for SDI benefits.

Baby Bonding

PDL is for pregnancy-related disability only. However, when you are no longer disabled by pregnancy, you may be entitled to additional time off to “bond” with your new baby. Please refer to the “Family and Medical Leave” section for additional information, or contact Human Resources.

Company Benefits While on the Leave 

While on PDL, the Company will maintain your existing health benefits (if applicable) as if you remained working. If you don’t return to work when the PDL is over, you may be required to reimburse the Company for the cost of health benefit premiums.

You will stop accruing paid time off during leave.

Please contact Human Resources if you have any questions about other Company benefits or seniority.

When Leave Has Ended

When your PDL, reasonable accommodation, or transfer ends, we will reinstate you to the same position or, in certain instances, to a comparable position. Also, you will not lose any benefits that accrued prior to the start of your leave.

You must notify the Company when you are able to return to work. If you take another job while on PDL, or if you do not return at the conclusion of leave without obtaining additional authorization for your absence, we may assume you have voluntarily resigned your employment. If you take additional, Company-approved leave immediately following your PDL, your right to reinstatement will be determined by the Company policy regarding that type of leave, not by this policy.

Personal Leave 

Full time associates that have been employed for at least 90 days may apply for an unpaid leave of absence for personal reasons. Requests for personal leave will require documentation as to the reason for the leave request. Generally, leave requests are granted for health or education related reasons. RC Willey may grant such requests at its discretion.

The supervisor, department manager and Human Resources must approve personal leaves in advance. Non-medical leaves of absence are granted up to a maximum of eight weeks. The exact length of an associate's leave will be determined by the individuals listed above.

Upon an associate's return from a non-medical personal leave, RC Willey will attempt to place the associate in the same or comparable position in the company if one is available with the wage appropriate for that position. An associate who is granted a non-personal leave does not have a guarantee of reinstatement when the leave is concluded.

Associates on a non-medical personal leave must use earned vacation during their absence. Unused vacation and sick leave will be held but not accrued during a personal leave of absence. 

Associates are not permitted to work for another employer or to be self-employed during a personal leave. If misrepresents facts in order to be granted a leave the associate may be subject to disciplinary action up to and including termination.

Associates may elect to continue insurance coverage while on a personal leave and will be responsible for paying their portion of the insurance premium. Premiums for coverage elected during a personal leave are due at the beginning of each month for which the coverage is in effect. Failure to pay their portion of insurance premiums within the 30-day grace period may cause their benefits to terminate. The associate’s insurance coverage may cease for the remainder of the leave if the premium payment is more than 30 days late. If RC Willey pays the missed premium contributions, the associate will be required to reimburse RC Willey for the delinquent payments. 

If an associate fails to return to work when the leave has ended, the associate will be considered as having voluntarily resigned from employment effective the latter of the last day of the leave or the date notification is received that the associate will not return to work.

Personal Medical Leave

Eligibility

If you are disabled due to illness or injury (and are not eligible for Family and Medical Leave, or have exhausted your right to it), you may be eligible for an unpaid Personal Medical Leave (“PML”). It doesn’t matter whether your illness or injury is work-related. You are not guaranteed a certain amount of PML; the amount of time will depend on the circumstances but generally would not be more than eight weeks. It may also run concurrently with other legally required time off. 

Notifying the Company for Needed Leave

To request PML, notify Human Resources or your manager in writing as soon as possible. You may be required to provide a medical certification or other documentation regarding your request or need for time off. The appropriate documentation will vary depending on the circumstances. Please do not assume a doctor’s note will be sufficient.

PML is unpaid. You will be required to use any accrued, unused vacation or sick leave (does not pertain to CA 3 day sick leave) during PML. But, the use of paid leave will not extend your leave, and you must comply with applicable paid leave policies. You can also contact the EDD to find out if you are eligible for SDI benefits.

Benefits During the Leave

Your eligibility for Company-paid health benefits continues during PML but you must pay the full premiums to continue your benefits. You will also stop accruing paid time off during the leave and generally, this leave cannot be taken intermittently.

Returning from Personal Medical Leave

When you are able to return to work, you must give the Company at least 5 days’ notice by providing Human Resources a certification from your health care provider stating you are able to return to your duties with or without reasonable accommodation. This notice is important so your return to work is properly scheduled.

If you take another job while on PML, or if you do not return at the conclusion of leave without obtaining additional authorization for your absence, we may assume you have voluntarily resigned your employment.

School Activities Leave

The company will allow time off to any associate who is the parent, guardian, or custodial grandparent of a child to allow that associate to participate in a qualifying activity at the child's licensed day care facility or school (from kindergarten through 12th grade). A qualifying activity includes finding, enrolling, or reenrolling the associate’s child in a school or with a licensed child care provider, or to participate in activities of the school or licensed child care provider of his or her child, if the associate, prior to taking the time off, gives reasonable notice to RC Willey of the planned absence; or to address a child care provider or school emergency, if the associate gives notice to the Company. However, regardless of the number of children the associate has, school activity leave may not exceed:

• Eight hours in any month (except for emergencies), and
• 40 hours in any year

Associates wishing to take time off for a child's school activity must give reasonable advance notice to their supervisor where possible. The company may require associates to provide documentation from the school showing participation in school activities. If both parents of the same child work at the same worksite, only the parent who first gives notice about a planned absence is entitled to the time off.

School activity leave is unpaid time off. However, all associates may use any accrued vacation during their leave. Full days off for school activity leave will be unpaid. No monthly limitation of 8 hours applies to emergency usage.

School Discipline Leave

The company will allow time off to any associate who is the parent or guardian of a child that is living with the associate and who needs to attend a school meeting related to the child's suspension from school.

Associates who need time off for a school disciplinary meeting must give reasonable advance notice to their supervisor. The company may require associates to provide documentation from the school to show:

• That the school principal requested the meeting, and
• The associate attended the meeting

School discipline leave is unpaid time off. However, all associates may use any accrued vacation during their school discipline leave. Full days off for school discipline leave will be unpaid.

Victims of Domestic Violence, Sexual Assault, or Stalking Leave

Associates who have been victimized by violence, or whose immediate family has been victimized by violence, including domestic abuse, sexual assault, or stalking, will be allowed to take time off to attend judicial proceedings; seek medical attention for injuries caused by domestic violence, sexual assault, or stalking; obtain services from domestic violence shelters or rape crisis centers or psychological counseling; and to participate in safety planning and other actions to increase safety from future domestic violence, sexual assault, or stalking, including temporary or permanent relocation.

RC Willey will also provide a reasonable accommodation for ensuring their safety while at work, unless doing so would create an undue hardship for RC Willey. Such accommodation may include a transfer, reassignment, modified schedule, changed work telephone, installed lock, implemented safety procedure, or other adjustment to a job structure, workplace facility, or work requirement. 

Associates must give reasonable advance notice to their immediate supervisor or Human Resources if time off or an accommodation is needed. The associate may be required to provide certification for their absence, such as a police report, a court order or medical documentation. These leaves are unpaid. However, associates may use any accrued vacation or sick leave during their leave. 

RC Willey will not discharge, threaten with discharge, demote, suspend, or in any other manner discriminate or retaliate against an associate in the terms and conditions of employment because the associate has taken time off under one of these policies. If an associate believes this policy against discrimination and retaliation has been violated, please notify Human Resources.

Leave under this policy does not extend the maximum time off available under the “Family and Medical Leave” and “California Family Leave” policies in this Handbook.

Crime Victim Leave

If an associate or their immediate family member ( spouse, registered domestic partner, child, child of a registered domestic partner, parent, sister, brother, grandparent, mother-in-law, father-in-law, stepparent, stepchild, and any other person who is part of your household) has been the victim of certain crimes defined by law, including serious or violent felonies or felonies relating to theft or embezzlement, the associate may take unpaid time off to attend judicial proceedings related to the crime or to appear in court at any proceeding in which a right of the victim is at issue. 

Associates may use accrued vacation or sick leave for any absence under this policy. Otherwise the time off will be unpaid. Associates may be required to provide appropriate documentation from the court.

California State Disability

RC Willey’s Short Term Disability (STD) benefit through the current disability provider does not apply to California associates; the California State Disability Insurance (SDI) replaces that benefit.

Lactation Accommodation

In consideration to working parents who may be lactating, RC Willey will provide a reasonable amount of break time to accommodate an associate desiring to express breast milk for the associates infant child. If possible, such break time should be taken during the rest or meal breaks already provided to the associate. For non-exempt associates, any additional breaks taken to express milk may be unpaid. Please let Human Resources know if you need additional time for this purpose.

The Company will provide you a room or other private location (not a restroom) near your work area to do so. The location will be free from intrusion and shielded from view; be clean and free of hazards or hazardous substances; contain a surface to place a breast pump and personal items; have a place to sit; and have access to electricity or alternative devices (such as extension cords or charging stations) needed to operate an electric or battery-powered breast pump. The Company also will provide access to a refrigerator or cooling device for milk storage.

The Company will not discharge, threaten with discharge, demote, suspend, or in any other manner discriminate or retaliate against you for requesting an accommodation under this policy. If you believe any part of this policy has been violated, please notify your supervisor and Human Resources, so we can address your concerns promptly. You also may submit a complaint to the California Labor Commissioner.

Civil Air Patrol Leave

Associates who have worked for the company for at least 90 days, who are members of the California Wing of the civilian auxiliary of the U.S. Air Force (Civil Air Patrol), will be allowed up to 10 days of unpaid leave per year for duties required in responding to an emergency operation mission. Associates requesting civil air patrol leave must give RC Willey as much notice as possible of the need for the leave. The associate will be reinstated to the position held when the leave began, or to an equivalent position upon completion of the leave. These associates may elect to use their accrued sick leave or vacation.

Volunteer Civil Service Leave

Volunteer firefighters, reserve peace officers, or emergency rescue personnel will be granted unpaid time off to perform emergency duties. Volunteer firefighters, reserve peace officers, and emergency rescue personnel will be allowed, up to 14 unpaid days off per calendar year, to engage in fire, law enforcement, or emergency rescue training. These associates may elect to use their accrued sick leave or vacation.

Bereavement Leave

Full-time associates must be employed for at least 90 days to be eligible for bereavement leave. For the death of immediate family members (spouse, registered domestic partner, parent, parent-in-law, child, child-in-law, sibling), full associates may take up to three days off of up to eight hours each for bereavement with pay. Compensation will be made at the associate’s base rate with the supervisor's approval. Sales associates will be reimbursed at the current PTO rate. Any additional time taken for bereavement for immediate family members may be charged against accrued sick leave or vacation. When entering leave for bereavement on the computer, please indicate the relation of the deceased person.

In the event of the death of an aunt/uncle, brother/sister in-law, grandparent or grandchild full-time and ¾-time associates are eligible for up to one day of bereavement leave. 

Military Leave

Associates who are called to active duty in the U.S. Armed Forces, Reserves, or National Guard, you may take military leave. The time off will be unpaid unless otherwise required by law. However, associates may use earned sick leave or vacation during that time. Associates should notify the company of the need for leave in advance whenever possible.

Associates who are absent on military leave for a longer period will be entitled to reemployment upon completion of service consistent with the requirements of the Uniformed Services Employment and Reemployment Rights Act and California Military and Veterans Code. Associates requiring extended military leave must provide advance notice unless precluded by military necessity and may be asked to provide a copy of their orders.

Military Training Leave

If you are required to attend military training, drills, encampment, naval cruisers, special exercise, or similar duty as a member of the U.S. Reserves, National Guard, or California State Military Reserve or Navel Militia, you may apply for a temporary military leave of absence not to exceed 17 days (including travel). This time off will be unpaid unless otherwise required by law. You may use any accrued, unused vacation for this purpose.

California Military Spouse Leave

Associates who work an average of 20 or more hours per week and have a spouse active in the US Armed Forces or National Guard and are deployed during a period of military conflict may be eligible for up to 10 days of unpaid leave when their spouse is on leave from active military service. Associates are allowed to use sick leave and vacation if desired though this is not a requirement. For an associate to be paid during this leave he or she must follow the normal procedure for payment of vacation and sick leave and need to identify the leave as military spouse leave. Associates must provide their immediate supervisor at least two business days’ notice (from the time they received official notice that their spouse will be released from military deployment). In order to be eligible for the leave, associates must complete the appropriate paperwork and certification process with Human Resources. 

Voting Leave

The company encourages associates to vote. Usually, associates will be able to vote either before or after their regular work schedule. If the associate is unable to vote before or after their regular work schedule, the company will allow the associate up to a maximum of two hours of time off to vote without a loss of pay. This time must be requested at least two working days in advance.

Election Official Leave

If you serve as an election official on Election Day, you will be granted unpaid time off for this purpose.

Jury Duty

Associates who are required to serve jury duty should notify their supervisors immediately. Associates will be granted a limited paid leave of absence of up to 20 days per calendar year to perform jury duty. 

During such leaves, associates will be paid their regular wage minus any compensation received from the court. To receive payment for regular wages, associates must send a copy of the letter from the court indicating service dates and compensation received to the Payroll Department. Regular wage for Sales associates will be determined by averaging their income for the previous year and dividing it by the hours worked. Associates should keep their check from the court, send a copy to payroll and the Payroll Department will issue them a check for the difference. Paid time for jury duty will only be granted for hours paid by the court plus reasonable travel time to and from court. 

Any days spent on jury duty in excess of 20 days per year will be treated as approved unpaid time off. Associates are expected to report for work if not needed on the jury during regular work hours.

Witness Duty and Family Crime Victims

Associates will be allowed time off to attend court proceedings if the associate is summoned for a court appearance as a witness, the victim of certain felonies, or the immediate family member or registered domestic partner of the victim of certain felonies, in order to attend judicial proceedings related to that crime. However, RC Willey reserves the right to deny leave to associates who are asked, but not subpoenaed, to appear as witnesses.

Associates must give notice to their supervisors as soon as they know that they will or might need time off for witness duty. RC Willey may require associates to provide documentation of the need for leave.

Leave for witness duty or Family Crime Victims is unpaid time off. Associates may use any accrued vacation during their leave.

Bone Marrow and Organ Donation Leave

Associates who have been employed by RC Willey for at least 90 days may request a leave of absence for organ or bone marrow donation. Associates may take up to five days of leave for bone marrow and up to 30 days for organ donation. For bone marrow leave, associates will typically be required to use accrued sick and/or vacation during the leave, up to a maximum of five days. Any remaining time will be paid at the associate’s normal pay rate. For organ donation, associates will typically be required to use accrued vacation during the leave, up to a maximum of two weeks. Any remaining time will be paid at the associate’s normal pay rate. Associates will typically be required to use accrued sick and/or vacation during the leave.

In any one-year period, leave taken for the purpose of organ donation may not exceed 30 days. This leave is available for associates who are organ donors. Also, in any one-year period, leave taken for the purpose of bone marrow donation may not exceed five days. This leave is available for associates who are bone marrow donors. An associate must provide written verification showing they are a bone marrow or organ donor and that there is a medical necessity for the donation.

This leave is a separate leave and will not run concurrently with the Family and Medical Leave Act (FMLA) or the California Family Rights Act (CFRA).

Rehabilitation Leave

An associate may request, and RC Willey will provide, unpaid time off or another accommodation (like an adjusted schedule) to voluntarily participate in an alcohol or drug rehabilitation program (unless it would impose a hardship on the Company). The company will attempt to keep the associate’s participation in a rehabilitation program private.

Literacy Assistance Leave

An associate may request unpaid time off or another accommodation to participate in an adult literacy assistance program (unless it would impose an undue hardship on the Company). Again, the company will attempt to keep your participation in a literacy program private.

Administrative Policies

Dress and Appearance

Every associate has the opportunity and responsibility to convey a professional and distinguishable image while at work. It is essential for the success of our company to appeal to customers in a way that makes them very comfortable doing business with us. The appearance (clothing, hair, and jewelry) of our associates is part of the customer’s experience in our stores and warehouses. When an associates’ appearance is professional at work, surveys indicate that a high percentage of customers will perceive them to be more knowledgeable about their job and more capable of delivering quality products and services than if they do not have a professional appearance.

All associates need to be easily distinguished and identified by our customers. Therefore, associates that work in our stores should wear RC Willey name badges and dress professionally. Some examples of appropriate clothing would include sport coats, dresses, slacks and long sleeve button down dress shirts. Ties are optional in most situations. RC Willey attire, in some departments, is also appropriate. Associates with customer contact (regardless of their department) are expected to maintain professional and conservative hair styles.

Warehouse associates are expected to wear RC Willey clothing or if approved by their location’s management, attire that presents a well-groomed appearance and appropriate for their work duties. Hair styles may vary from that expected for those with customer contact, while still keeping their appearance well-groomed and appropriate for the work setting.

Examples of inappropriate clothing might include workout-type attire, clothing that is revealing, tight or above-the-knee, sleeveless tops, short sleeve dress/polo shirts and denim/Levi’s (denim or polo shirts are okay in some positions with management approval), and flip flops.

Any hair styles, tattoos, or skin piercing jewelry that may be considered extreme or offensive are not appropriate and must be covered or removed.

Other styles of dress and appearance not noted above may be considered extreme or unprofessional by company supervisors and managers and therefore inappropriate while at work.

We appreciate your attention to this important aspect of our business. Immediate supervisors are responsible to interpret and enforce this policy as necessary. If an associate’s appearance is not appropriate, they will be asked to “clock out” to go home and correct it before returning to work. Associates will not be paid for this time. Repeat offenses of this policy may subject an associate to performance counseling and disciplinary action up to and including termination.

Smoking

For the health, comfort and safety of all associates and customers, RC Willey prohibits smoking (vapor/electronic) or chewing tobacco inside any of our facilities or vehicles, in the customers’ view, or within 25 feet of any RC Willey facility entrance, exit, open window or air intake.

Telephones

The use of telephones while working should be confined to business calls. When possible, personal calls are to be made and received during break periods. Under no circumstances should personal long distance calls be charged to the company. Associates who have direct contact with customers and are not required to have a phone as part of their job should have personal cell phones put away while on duty.

The overhead paging system should be used to notify associates of important phone calls and inform sales associates of customers needing assistance. It is important to eliminate any unnecessary pages that could disrupt or interfere with these objectives.

Using Mobile Devices While Driving

Associates are discouraged from using any mobile device (e.g., smart phones, cell phones, PDAs, etc.) while driving for company business or driving a company vehicle at any time. Safety must come before all other concerns. Regardless of the circumstances, including slow or stopped traffic, associates are encouraged to pull off to the side of the road before placing or accepting a call, Associates who are driving may not hold a mobile device. If it is absolutely necessary, any mobile device used while driving must be mounted on the dashboard, windshield, or console, and may only activate or deactivate a feature or function with a single swipe or finger tap. If a mobile device is not mounted or does not have this capability, associates may not use it while driving for company business.

Employees may not read, write, send, or access any text-based communications while driving. This includes any text messages, emails or other written communication and are not allowed while driving.

Special care should be taken in situations where there is traffic, inclement weather or the associate is driving in an unfamiliar area.

When at least two associates are in the same vehicle, the passenger should handle any phone calls, text messages, emails, or similar communications. The driver is also subject to all the restrictions above.

Associates who are charged with traffic violations resulting from the use of their phone while driving will be solely responsible for all liabilities that result from such actions.

Computer, Communication and Information Systems

Computer, communication and information systems equipment is the property of and provided by RC Willey for business use. This would include but not be limited to: computer and telephone systems, RC Willey networks, all files hosted on the RC Willey server, RC Willey personal computers, voice mail, e-mail, company blogs, intranet and internet. RC Willey’s objective in providing these services, property and information to associates is to promote efficiency in the workplace by allowing associates to obtain and disseminate information to assist them in their jobs.

All associates have a responsibility to use all RC Willey computer, communication and information systems and resources in a professional, lawful, ethical, appropriate, and job-related manner. Any information related to co-workers or customers may only be viewed or used when required by a legitimate job-related purpose.

Incidental personal use of computer, communication and information systems is permitted with prior supervisory approval and if it does not: a) interfere with the user’s or any other associate’s job performance; b) have an undue effect on the computer or RC Willey’s performance; or c) violate this or any other RC Willey policy. However, excessive use of company computers, communication and information systems and resources for personal reasons is forbidden and could subject an associate to performance counseling and disciplinary action up to and including termination.

Associates accessing the internet and e-mail are only allowed to access business related sites and information. It is strictly prohibited to view or forward any inappropriate or offensive material.

Associates accessing the internet do so at their own risk and the company is not responsible for material viewed or downloaded by associates from the internet. Additionally, having an email address may lead to receipt of unsolicited e-mail containing offensive content. Please notify the company of content your believe violates the “Harassment-Free Environment” policy, below.

Licensing or downloading any material or software without first obtaining the express written permission from RC Willey is prohibited. Bypassing RC Willey’s computer network security by accessing the internet and/or personal e-mail accounts on an RC Willey device or computer directly by Wi-Fi or other means is strictly prohibited.

Without prior written permission from RC Willey, RC Willey's computer, communication and information system may not be used to view, disseminate, or store personal/commercial advertisements, solicitations, promotions, destructive code (e.g., viruses, trojan horse programs, etc.) or any other unauthorized materials.

Files obtained from sources outside RC Willey including storage devices brought from home, files downloaded from the internet, newsgroups, bulletin boards, or other online services, files attached to e-mail and files provided by customers or vendors, may contain dangerous computer viruses that may damage RC Willey’s computer network. Associates should never download files from the internet, accept e-mail attachments from outsiders, or use storage devices from non-RC Willey sources, without first scanning the material with RC Willey-approved virus checking software. If you suspect that a virus has been introduced into RC Willey’s network, notify RC Willey’s IS Department immediately.

Associates may not illegally copy material protected under copyright law or make that material available to others for copying. Each associate is responsible for complying with copyright law and applicable licenses that may apply to software, files, graphics, documents, messages and other material.

Associates should have no expectation of privacy in anything they create, store, access, send or receive using RC Willey's computer, communication and information systems including but not limited to, email, cell phone, text message, personal or company blogs and any other communication device and/or system. Associates are advised not to use these systems for personal communication they consider confidential. Associates should know that RC Willey may access and monitor any and all aspects of its computer, communication and information systems including, but not limited to, monitoring internet sites visited by associates, monitoring company and personal blogs containing information related to RC Willey, monitoring file downloads, voice mail messages, telephone conversations and all communications sent and received by associates, including text messages, pictures and videos sent via cell phones.

Inappropriate use of these systems for any reason may result in disciplinary action up to and including termination, as well as civil and/or criminal prosecution if applicable.

Confidentiality

It is absolutely essential that each associate maintain a high level of integrity in regards to keeping personal information confidential for customers and associates. Examples include: addresses, RC Willey account history, phone numbers, credit reports, passwords, etc. Personal information must be accessed and used for job related purposes only and never be given out over the phone or in person without proper authorization. Breach of confidentiality may result in disciplinary action up to and including termination.

In the course of employment, associates may receive or be exposed to information including, but not limited to, information regarding applicants, suppliers, vendors, margins, sales figures, advertising plans, profits and other information that RC Willey considers proprietary and confidential. Associates are required to maintain strict confidentiality with respect to information pertaining to all aspects of RC Willey’s business operations. Such information should not be discussed with anyone who does not have a legitimate business need for such information or anyone that does not work for RC Willey.

Associates may not remove or make copies of any confidential RC Willey records, reports or documents without prior management approval. Inappropriate disclosure of confidential information or removal of records may result in disciplinary action up to and including termination, as well as civil and/or criminal prosecution if applicable. Some associates may be asked to sign a separate confidentiality statement.

Parking

Parking areas for associates have been established at all facilities. In order to allow maximum convenience for customers, associates are asked to park in designated areas. On Saturdays and special sale days, associates may be asked to park outside of the designated associate’s parking area to ensure adequate parking spaces for customers. Associates with a disability or temporary physical condition (e.g., pregnancy) may park closer upon receiving permission from their supervisor. Contact your supervisor for more information regarding designated parking areas.

The company is not responsible for damage or theft involving associates’ vehicles or personal items on RC Willey property.

Solicitations

No associate is permitted to conduct any type of solicitation during working time including, for example, canvassing, collecting funds, soliciting pledges, circulating petitions, soliciting memberships for organizations or any other such activity undertaken for any purpose. No associate is permitted to distribute any non-company literature or other materials such as leaflets, letters, petitions or other written materials during working time or in working areas, with one exception. Associates may post information on the break room bulletin board for charity-type fundraisers for community groups such as youth groups (Girl Scouts, Boy Scouts, school band trips, athletic teams, etc.) and registered charities (associations for heart, kidney, diabetes, cancer, etc.).

Persons not employed by RC Willey are not permitted, at any time or in any manner, to conduct any form of solicitation on any company property or to distribute any literature or other materials to any associate or customer of RC Willey.

Associate References

All requests for references by potential employers must be directed to Human Resources for response. No other associate, supervisor or manager is authorized to release reference information or opinions concerning a current or former associate on the company’s behalf.

Work Schedules and Employment Status

Although supervisors will try to maintain work schedules discussed during the hiring process, business and staffing needs may require that schedules be changed temporarily or perhaps indefinitely. The supervisor may also need an associate to work less or more hours than what was originally anticipated. This may necessitate a change from full-time hours to part-time hours or vice versa without a change of status if the change is only temporary, or the associate’s full or part time status may be changed if the need is indefinite. To best meet business and departmental needs, all schedules and hours worked by associates are at the discretion of the supervisor.

Problems/Suggestions

Associates are encouraged to discuss work-related problems or suggestions with their immediate supervisors. RC Willey values the input of associates and welcomes their comments.

In the case of associate problems, the supervisor should attempt to bring about a satisfactory resolution. If the matter cannot be resolved at the supervisory level, it should then be referred to the next ascending level of authority within the department. In addition, Human Resources is available to assist associates or supervisors at any time to help resolve any differences. Whenever possible, all counseling situations are treated as confidential and information is discussed only with those that need to know.

Some policies in this handbook have specific reporting procedures. Those procedures are designed to most effectively and efficiently resolve your concerns related to the applicable policy. Associates are expected to follow those specific procedures, rather than this policy. For example, follow the reporting procedures referred to in the “Equal Employment Opportunity” to report perceived violations of that policy.

Pay Practices

All hourly, non-exempt associates will be responsible for clocking in and out at work by using a computer terminal nearest their assigned work area.

Any associate found omitting, altering or falsifying information on their actual time worked or having someone clock in or out for another associate will be subject to discipline which could result in termination.

Associates must clock out whenever leaving the property for any reason (other than a rest break), unless their job duties require work off site. If an associate fails to clock in or out, or needs to correct logged information, they must fill out an Associate Log Form with time(s) and date(s) to correct the inaccurate log times and turn it in to their supervisor for approval and processing. All time clock corrections should be turned in for correction during the same week in which they occurred. All leave requests must be entered into the computer system upon the associate’s return to work (or before when practical). All leave must be entered and approved before it can be paid.

Pay Practices for Exempt Employees

If you are an exempt employee, you receive a salary intended to compensate you for all hours you work for the Company. Although your salary may be subject to review and modification from time-to-time, such as during a salary review, the salary will be a predetermined amount that will not be subject to deductions for variations in the quantity or quality of your work.

Under applicable law, your salary is subject to certain deductions. For example, your salary can be reduced for the following reasons:

• Full-day absences for personal reasons unless you utilize paid time off available to you;
• Full-day absences for sickness or disability, unless you use the paid sick leave available to you;
• Intermittent absences, including partial-day absences, covered by the federal Family and Medical Leave Act (“FMLA”), if you have exhausted other paid leave available to you;
• To offset amounts received as payment for jury and witness fees or military pay;
• During the first or last week of employment in the event you work less than a full workweek; or
• Any workweek in which you perform no work for the Company.

Your salary also may be reduced for certain types of deductions, such as your portion of health, dental, or life insurance premiums, state, federal, or local taxes, social security, or voluntary contributions to a retirement plan.

In any workweek in which you perform any work, your salary will not be reduced for any of the following reasons:

Partial-day absences for personal reasons, sickness, or disability not covered by FMLA;

Because the facility is closed on a scheduled workday;

Absences for jury duty, attendance as a witness, or military leave; or

Any other deductions prohibited by state or federal law.

All Associates

If you believe you have been subject to any improper deductions or there are any errors in your pay, immediately contact the Payroll Department (801-461-3917). If you have not received a satisfactory response within 5 business days, please immediately contact The Director of Human Resources (801-461-3907).

Every report will be investigated fully. No one will be subject to, and the Company prohibits, retaliation for reporting perceived violations of this policy. If you believe someone has violated this policy against retaliation, please contact The Director of Human Resources (801-461-3907) immediately.

Breaks

Rest Breaks

All non-exempt associates are entitled to 10-minute, paid, rest breaks. An associate is entitled to one rest break for every 4-hour work period (or major fraction of a work period) the associate works. However, if your total daily work time is less than 3.5 hours, you may not receive a rest break.

Hours of Work	Rest Breaks
Less than 3.5	0
3.5 – 6	1
+6 – 10	2
+10 – 14	3
14 –18	4

Breaks may not be combined or used in lieu of a meal break or to justify arriving late or leaving early. Nursing mothers who need to express during the workday will be provided a room or other private location (not a restroom) to do so. Associates should use their rest and meal breaks, and let us know if they need additional unpaid time for this purpose. Please contact your supervisor to arrange lactation times.

Meal Breaks

Meal breaks are provided for all associates of at least 30 minutes. Associates are responsible to clock in and out at the beginning and at the end of their meal break. RC Willey management will provide and enforce meal breaks according to California law. Failure to take appropriate meal and rest breaks may result in disciplinary action. The Company chooses to not recognize meal period waivers as an option to negotiate meal breaks.

Hours of Work	Meal Breaks	Timing
Less than 5	N/A	N/A
5-10	1	Begin before the end of the 5th hour
Over 10	2	Begin before the end of the 10th hour

Associates are relieved of all duty during rest and meal breaks and are prohibited from working.

Please do not interrupt other associates with work-related matters while they are on rest or meal breaks. Similarly, if someone other than the associate’s supervisor interrupts the rest or meal break with a work-related matter, the associate should refer the individual to their supervisor. If the associate’s supervisor asks them to interrupt the rest or meal break for work purposes, the associate will receive a replacement rest or meal break or compensation as required by law. 

Additionally, if for any reason an associate is prohibited or discouraged from taking the applicable rest or meal breaks, or if an associate performs any work during the rest or meal breaks, the associate must notify their manager or Human Resources immediately.

Payroll

Hourly associates (other than sales) and salary associates are paid every other Friday. The two-week pay period begins on a Saturday and ends on a Friday. Check stubs will be displayed online on payday. Associates will not be permitted to pick up their payroll checks before the specified payroll date. RC Willey encourages new associates to set up direct deposit accounts. Direct deposit has many advantages to associates and the company, including: 1) payroll funds are automatically transferred to associate’s checking or savings account; 2) elimination of the possibility that a check is lost or stolen before it is deposited; 3) associates do not need to make an extra trip to the bank to deposit their check; 4) funds are deposited regardless of an associate being sick or on vacation on payday; and 5) the payroll process runs more efficiently. Associates should contact the Payroll Department if they have any questions regarding direct deposit.

Sales associates should refer to their sales agreement for information regarding pay dates and other detailed pay information.

Because of privacy concerns and to ensure confidentiality, associates are required to send via mail (US Mail or interoffice) or secure email any payroll withholding allowance (Form W-4) updates or changes to Human Resources. Once received, Human Resources will begin withholding no later than the start of the first payroll period ending on or after the 30th day from the date the updated form is received. Please plan accordingly.

Changing the number of exemptions to manipulate the amount of net pay on selected paychecks and back again puts the associate and the company at risk. When this happens, one of the W-4s is obviously incorrect. IRS guidelines indicate that an associate who knowingly files a false Form W-4 may be subject to a $500 penalty. The company is also prohibited from using a false Form W-4 to calculate withholding.

Overtime

Supervisors must approve all overtime in advance. All associates eligible for overtime will be paid at the rate required by law. For purposes of calculating overtime, the workday begins at 12:00a.m. and ends at 11:59 p.m., and the workweek begins on Saturday at 12:00 a.m. and ends the following Friday at 11:59 p.m. Hours paid to associates as part of scheduled holidays, vacation, and sick leave will not be considered hours worked for overtime purposes.

Final Paychecks

All associates terminating their employment will be paid in accordance with the law applicable to the state in which they are employed. The final paycheck will include all remaining accrued vacation. Detailed final pay information for sales associates can be found in their sales agreement.

Terminated associates will remain enrolled on the health insurance plans they have elected through their last day of employment. A COBRA notice will then be sent offering optional continued coverage.

Hiring Practices

Job Posting

The company considers current associates before outside applicants. Typically, positions will be posted online and at a central point in each location. If an associate is qualified for and interested in any posted opening, the associate must complete an In-House Transfer form and turn it in to their supervisor to be considered. The supervisor will then complete the form, have the location manager sign it and forward it to Human Resources.

An hourly associate must work in their current position for at least three months to be eligible to transfer (six months for associates transferring to a corporate position). This allows the associate time to become proficient in their current position and reduce the need for constant retraining in entry-level positions. Transfers are subject to position availability, job performance and evaluations through the normal interviewing process. RC Willey reserves the right to promote and transfer associates prior to the eligibility periods when the need arises due to staffing requirements and business needs.

To be considered for a transfer, sales associates generally must work for a period of one year in the same location when new to the position. If an associate has been with the company more than one year, the associate generally must work at least 90-days in any given position at the same location to be considered for an additional transfer. Further, sales associates must meet the criteria listed in the Sales Transfer Policy to be eligible for a transfer.

The transfer time limits may be modified when transferring between markets or states due to personnel needs and must be approved in advance by both location managers and the Human Resources department.

To avoid possible conflicts, inter-departmental transfers must be approved and offered by Human Resources. It is inappropriate for managers to solicit or discuss possible transfers with associates without first consulting Human Resources and the associate’s supervisor.

In connection with promotions or transfers to supervisory positions or to positions where associates enter customer’s homes, drive company vehicles, etc. to conduct company business or to other positions with access and control over company systems and assets, the company will conduct background verifications and drug screens consistent with that done at the time of hire, and in accordance with state law.

Any associate who has received any written performance counseling is not eligible to transfer for a minimum of 90 days (6 months for sales associates) following the date of the notice. Some rare exceptions to this policy may be made upon agreement between supervisors in both departments and after consultation with Human Resources.

RC Willey is an equal opportunity employer and makes all employment decisions without regard to any associate’s membership in a protected class.

Re-Hire

Former associates must submit an employment application to the company and follow the same application process and will be evaluated by the same standard as other applicants.

Associates rehired within thirteen weeks of their termination dates may have their insurance benefits reinstated the first of the month following the re-hire date (as determined by ACA regulation; contact Human Resources for more information). Associates with breaks in service may use their combined years of service with the company for the Associate Purchase Plan. However, associates with any break in service (regardless of the length of that break) will be treated as new hires with regard to vacation, years of service recognition, profit sharing bonuses, and other length of service benefits (other than previously noted) and in accordance with state law.

Profit sharing and 401(k) eligibility for associates who are re-hired by the company will be determined according to the Profit Sharing and 401(k) Plan Documents.

Nepotism

Pending approval from a committee, related associates may work in different departments at the same location. This committee will review requests for applicants and for in-house transfers to ensure there is not a potential or perceived conflict of interest. Associates are required to disclose family relationships on the In-House Transfer form. Related associates cannot work in the same supervisory line, regardless of location. Related family members as defined by this policy are as follows (including in-law and step relatives):

• Husband/Wife
• Father/Mother
• Son/Daughter
• Brother/Sister
• Significant other/Partner

Associates are required to disclose any family/work relationships that may be subject to this policy.

This policy applies to new hires and transfers within the company. If a circumstance prohibited by this policy occurs in the future as the result of marriage, one of the associates must transfer to alleviate the policy conflict within 90 days.

This policy is not effective as to circumstances that existed prior to September 1, 2022 and the family members of the Board of Directors. RC Willey locations that are not within a reasonable distance from another location may have a modified nepotism policy.

Non Fraternization

RC Willey prohibits managers or supervisors from having a personal/dating relationship with an associate for whom the person provides any level of supervision. This would include but not be limited to dating, sharing the same household, etc. If this situation currently exists, the associate’s manager and human resources will determine if a transfer is necessary. All involved parties are required to report any relationship that may pertain to this policy.

Job Requirements / Performance Standards

All positions have minimum job requirements that must be met and some have additional performance standards (such as sales and some warehouse positions) that must be met for continued employment. Our hope is that all associates exceed (or at least meet) the minimum standards. However, if the standards are not met, the associate must apply and be selected for a different position in the company within the specified time or seek employment elsewhere to better match their talents and abilities. Associates who are unable or unwilling to transfer may be subject to discipline up to and including termination.

Safety, Product and Property Guidelines

RC Willey expects associates to work safely, handle product appropriately and protect company property.

With heightened awareness, safe work practices and careful product handling, we believe that all injuries and accidents are preventable. Our goal is to eliminate all unsafe acts and mishandling of product and property. Associates will be held accountable for unsafe acts and mishandled product or company property (see the Safety, Product and Property Guideline policy). Company drivers are also accountable for specific driving guidelines and policies.

Conflicts of Interest

In order to preserve the common corporate interest in a continued, efficient and profitable operation and to protect RC Willey and its associates’ reputation for integrity, associates may not be involved in outside business interests that may be disruptive, collusive or in direct competition with RC Willey.

It is the policy of RC Willey to recognize and respect the right of its associates to engage in outside financial business or other activities which they may deem proper provided that such activities:

• Do not impair or interfere with the associate’s performance of company duties.
• Do not involve the misuse of RC Willey’s influence, facilities or other resources.
• Do not discredit the good name and reputation of RC Willey.

Accordingly, for all business relationships with outside individuals and organizations and for all personal business undertakings, all RC Willey associates should:

• Act in accordance with established company standards and reasonable expectations.
• Protect their own reputations and the interests of RC Willey against actual or potential conflicting interests with outside parties.
• Not invest in non-public, competing companies.
• Avoid any attempt to pre-empt or usurp a corporate opportunity as, for example, to purchase or sell land or intellectual property rights in which RC Willey has or may have an interest.
• Avoid any interest in or relationship with an outside organization or individual having business dealings with RC Willey if this interest or relationship might tend to impair the ability of the associate to serve the best interests of RC Willey.
• Avoid doing business with a relative (or a company with which a relative is associated) on behalf of RC Willey unless the facts are disclosed and is approved in advance by the department head. Whenever possible associates should receive competitive bids to avoid the appearance of a conflict of interest.
• Not accept any loan, gift or favor from a customer or other source that has business relations with RC Willey. Gifts from vendors and suppliers (current and potential) are strongly discouraged; however, associates may accept from suppliers or vendors gifts or favors of nominal value (less than $50) or casual entertainment that meet all standards of ethical business conduct upon approval from the department head.

A conflict of interest may also arise if an associate’s spouse, significant other or immediate family member works for a direct competitor. If this situation arises, prompt disclosure to senior management is required. The company will then review the situation and take into account the nature of the jobs, possible access to sensitive information and the level of responsibility of those involved. Associates may be warned of potential conflicts, have their job duties modified, be reassigned to another job and/or department or be terminated.

This policy requires every associate to disclose promptly, in writing, any personal situation or transaction that is or could be in conflict with the intent of this policy. Disclosures will be made to immediate managers and, in appropriate situations, to upper-management. Associates in some departments may be required to sign an additional Conflict of Interest policy.

To keep focused on serving our customers and to be fair with all associates, the display, promotion, sale or solicitation of “non-RC Willey” merchandise or literature on company time, on company property or in customer’s homes by associates is prohibited.

Equal Employment Opportunity

RC Willey's goal is to provide an environment that is free of discrimination. In all matters related to terms and conditions of employment, including but not limited to: recruitment, hiring, compensation, promotion, demotion, transfer, training, layoff and termination only valid, non-discriminatory criteria will be used.

RC Willey's management supports the policy of Equal Employment Opportunity for all persons regardless of a person’s race, ancestry, religion or religious creed (including religious dress and grooming practices), color, age (40 and over), sex, gender, sexual orientation, gender identity or expression, genetic information, national origin (including language use restrictions), marital status, medical condition (including cancer and genetic characteristics), physical or mental disability (including HIV and AIDS), military or veteran status, pregnancy, childbirth, breastfeeding and related medical conditions, or any other classification protected by federal, state, or local laws, regulations, or ordinances. As further described below, we also prohibit retaliation for reporting a perceived violation of this policy, or participating in an investigation of such a complaint. Our policy and the law prohibit co-workers, third parties, supervisors, and managers from engaging in such conduct. Engaging in conduct that violates this policy may result in discipline, or even termination of employment.

It is RC Willey’s practice to make reasonable accommodations to qualified individuals with a disability or based on an associates's religious beliefs, as long as the accommodation is reasonable and will not cause an undue hardship on the operation of RC Willey’s business.

RC Willey also expects all associates to treat their fellow associates and customers with respect and to follow non-discriminatory practices in performing their duties.

Any associate who feels this policy has been violated should report the perceived violation immediately, following the “Complaints” procedure identified below.

Harassment Free Environment

New associates will be provided with a copy of the State of California Department of Fair Employment and Housing “Sexual Harassment” (DFEH-185) brochure upon their hire. Associates and supervisors will be provided training in the avoidance of sexual harassment pursuant to the requirements of state law.

All policies contained in this handbook will be interpreted and applied in accordance with applicable federal, state and local laws, and to the extent the laws impose greater restrictions than this policy, the laws are controlling. Further, RC Willey retains all available rights and defenses under applicable law, whether or not specifically set forth in these policies.

It is our goal at RC Willey to provide our associates, potential associates and customers with an environment that is free of harassment based upon legally protected classifications.

Inappropriate conduct relating to an associate’s membership in any protected class, along with unwelcome sexual advances, requests for sexual favors, or harassment of a sexual nature do not belong in the workplace. Such remarks or acts will not be tolerated at RC Willey toward any person.

Harassment

“Harassment” as used in this policy includes disrespectful or unprofessional conduct based on any of the protected categories listed above. It may be verbal (such as slurs, jokes, insults, epithets, or teasing), graphic (such as offensive posters, symbols, cartoons, drawings, computer displays, or emails), or physical conduct (such as gesturing, physically threatening another person, blocking someone’s way, etc.). This type of conduct violates this policy, even if it does not violate the law. It is difficult to define “unlawful” harassment, and so we always expect employees to behave professionally and respectfully.

The following are examples of impermissible harassment under this policy: referring to any person by a demeaning name, belittling or demeaning another associate, or engaging in conduct which tends to harass or aggravate another associate that is based on their race, sex, sexual orientation, gender identity, color, religion, age, disability, marital status or national origin.

Sexual Harassment

“Sexual harassment” includes all of the actions described above, as well as unwelcome sex-based conduct like unwelcome sexual advances, requests for sexual favors, conversations regarding sexual activities, or other sexually suggestive conduct. The conduct does not have to be motivated by sexual desire, and it does not have to be directed at any particular person. For example, it includes an inappropriate sexual conversation between two employees that is overheard by a third person, who reports the conduct.

The following are examples of behavior that constitutes sexual harassment under this policy:

• Verbal, physical or visual conduct of a sexual nature or suggestion that is unwelcome and creates an intimidating, hostile or offensive work environment.
• Explicit sexual propositions, sexual innuendos, suggestive jokes, jokes about gender-specific traits, foul or obscene language or gestures, display of foul or obscene printed or visual material.
• Unwelcome physical contact such as patting, pinching, or brushing against another’s body.
• A circumstance where submission to, or rejection of, such conduct (whether spoken or implied) is used to make decisions affecting an individual’s opportunity for employment or advancement.

Associates should be aware that conduct or a conversation may be considered inappropriate if the conduct or conversation is seen or overheard by other customers or associates, and the conduct or conversation is deemed inappropriate based on standards established in this harassment policy.

Associates found in violation of this policy will be subject to disciplinary action up to and including termination.

Any associate who feels that he or she is being subjected to harassment should first tell the person their behavior is offensive. If you are uncomfortable or unable to immediately and completely resolve the issue with the other person or are aware of such conduct taking place, please contact your manager or Human Resource management at once.

Accusing an individual of harassment is serious. If an investigation determines that an allegation of harassment has been falsely made for an ulterior purpose, the individual making the complaint may be subjected to discipline up to and including termination.

Anti-Retaliation

RC Willey will not tolerate retaliation against any associate who reports perceived prohibited harassment or discrimination, who assists another associate or applicant in making a report, who cooperates in an investigation, or who files an administrative claim with the EEOC or the DFEH. The company will investigate any complaints of discrimination or harassment and take any necessary corrective action up to, and including, termination. It is also the company’s policy to ensure against and to take corrective action against any associates who harass, embarrass, or retaliate in any respect, against anyone who has made a complaint regarding discrimination or harassment. Any associate who believes this policy has been violated should follow the “Complaints” procedure below to report the perceived violation.

Complaints

Any associate who believes someone has violated the Company's policies prohibiting discrimnination, harassment, or retaliation should notify their supervisor and Local Human Resources or Corporate Human Resources immediately. You may report a concern anonymously. However, the Company prefers direct communication, because it is more difficult for the Company to investigate and, if necessary, remedy issues raised in anonymous complaints.

If you make a complaint under this policy and do not feel the Company has responded appropriately, please contact Human Resources immediately.

Any supervisor or manager who learns of any potential misconduct related to this policy must immediately report the matter to Human Resources, so the Company can try to resolve the claim internally.

RC Willey will conduct a fair, timely, impartial, and thorough investigation (consistent with the particular circumstances). The investigation will provide all parties appropriate due process and reach reasonable conclusions based on the evidence collected. To the extent possible, RC Willey will try to keep the reporting associate’s concerns and the investigation confidential. Of course, RC Willey cannot promise complete confidentiality because there are circumstances in which we may need to speak with others about the complaint or investigation (for example, witnesses you identify). All associates are expected to cooperate fully with our investigations. For example, we expect associates to maintain an appropriate level of discretion regarding the investigation and to share anything that may be relevant.

Upon conclusion of the investigation, the company will take action deemed appropriate under the circumstances based upon the evidence supporting the violation of the policy and the gravity of the policy violation, which may include termination of employment.

We hope you will trust this process and bring your concerns to us so we can work to resolve them. However, you may also bring your complaints to the California Department of Fair Employment and Housing and/or the federal Equal Employment Opportunity Commission. You can find contact information for these agencies in the phone book or on the Internet.

Appeal Process For Employment Related Decisions

If the complainant or respondent involved in a Company-initiated investigation are not satisfied with the result, the associate may appeal the matter to the Director of Human Resources. The Director of Human Resources will consider the appeal and may review the matter with at least two senior managers. 

The appeal must be made in writing and delivered to the Director of Human Resources within ten (10) days of the date the associate is informed of the decision. The Director of Human Resources and senior managers will generally consider all the evidence available and render a decision within approximately thirty (30) days of the date they receive notice of the appeal. Those conducting the review may take any action they deem appropriate for the circumstances, including but not limited to upholding the prior decision, reversing the prior decision or imposing any new disciplinary action.

Workplace Rules

Rules and regulations are essential to the efficient operation of any company. The following rules have been established for the common guidance of all associates. These rules are fundamental and are designed for the protection and convenience of all associates and customers of RC Willey.

The following are examples of behavior that may lead to disciplinary action, which may include termination. This list is in no way complete and is intended to be used merely as a guide. RC Willey reserves the right to terminate employment at-will, with or without cause.

• Theft, covering up theft, misappropriation or misuse of company, associate or customer property.
• Improper handling of cash, including cash overages and shortages.
• Falsification of personnel, pay, clock in/out time or other records for or on behalf of the associate, co-workers or customers.
• Dishonesty of any type including deception or misrepresentation towards any associate, customer or supplier.
• Poor service to customers or other associates.
• Refusal to obey a legitimate work related request of a supervisor or any similar insubordination.
• Refusal or failure to do a job assignment.
• Exhibiting the inability to cooperate or work well with other associates or customers.
• Abusive or threatening language or behavior to any customer or associate.
• Inappropriate comments or behavior of any kind made to an associate, customer or the general public.
• Threatening, intimidating or coercing any associate or customer, or interfering with supervision of associates at any time.
• Fighting, horseplay or careless behavior.
• Physical contact with another person that may be considered offensive or inappropriate and perhaps even unlawful and against our harassment policy.
• Possession or use of any alcoholic beverage or illegal drug on company property (or in a company vehicle) at any time.
• Inability to satisfactorily or safely perform assigned work due to the influence of drugs or alcohol.
• Positive drug or alcohol test results, refusal to submit to a drug test for any reason, or admission of illegal drug or alcohol use as described in the drug and alcohol testing policy.
• Being unable or unwilling to work hours assigned on the schedule or working more or less hours than scheduled without prior approval from immediate supervisor.
• Being absent or late without properly notifying an immediate supervisor.
• Excessive tardiness or absenteeism.
• Three consecutive days of not coming to work or not contacting an immediate supervisor will be considered a voluntary resignation.
• Any associate that is unable to report to their assigned work shift because of incarceration will be considered unexcused and may be subject to disciplinary action up to and including termination.
• Sleeping on the job and on company-paid breaks outside the break room.
• Misuse or willful destruction of any company, associate or customer property.
• Violation of safety policies and/or procedures.
• Improper use of passwords including: using, attempting to use or attempting to obtain another associate’s password.
• Use of telephones or any company communication or information system to obtain or view information or perform non-work related functions without permission from supervisor.
• Inappropriate use of company telephones, any company communications, computer systems or other company equipment.
• Obtaining or using confidential information (credit histories, salary histories, personnel files, advertising information, other personal information, etc.) for inappropriate non-work related reasons or for any other use other than directly needed to perform your job.
• Violation of guidelines, policies and/or procedures stated in this handbook.

Workplace Violence Prevention

We are committed to providing a safe workplace. We discourage employees from engaging in any physical confrontation with a violent or potentially violent individual. However, we do expect and encourage employees to exercise reasonable judgment in identifying potentially dangerous situations and informing management or law enforcement (in appropriate circumstances) right away.

Threats, threatening language, or any other acts of aggression or violence made toward or by any Company employee will not be tolerated. A “threat” includes any verbal or physical harassment or abuse, attempts to intimidate or to instill fear in others, menacing gestures, bringing weapons to the workplace, stalking, or any other hostile, aggressive, injurious, and/or destructive actions undertaken for the purpose of domination or intimidation.

You should immediately report all potentially dangerous situations, including threats by coworkers or outside parties, to Human Resources or to any member of management with whom you feel comfortable. If you believe you or others are at imminent risk of physical harm, call 911 and take steps to ensure your safety or that safety of others (e.g., leave the premises). We will investigate the situation immediately and take appropriate action to address the problem. 

You will not be retaliated against for reporting perceived violations of this policy or participating in the investigation of a complaint. If you believe someone has violated this policy against retaliation, please immediately contact a member of management or Human Resources.

Notification of Criminal Convictions

In order to provide a safe environment for our associates and customers, all associates are required to notify Human Resources of all criminal misdemeanor or felony convictions (other than minor traffic violations). This notification must be made within five (5) business days of the conviction. In accordance with applicable law, associates who are convicted of a crime that is deemed to be job-related may be subject to reassignment and/or disciplinary action up to and including termination.

Company Searches & Surveillance

Associates have no expectation of privacy with respect to use of any company property. RC Willey reserves the right to conduct unannounced searches of its property, vehicles and facilities, including work areas, desks and lockers assigned to associates at any time. RC Willey also reserves the right to keep and monitor telephone records, internet usage, e-mails, instant messaging and all other voice or electronic communication or data initiated or received on all company or company issued telephones, computers, devices, services, or other communication and information systems and resources. No associate has the right to interfere with or object to such searches of company property based on expectations of privacy or otherwise.

RC Willey also reserves the right to search personal property belonging to its associates, including but not limited to, lunch boxes or bags, pocketbooks or briefcases if such property is brought onto company premises or into company vehicles.

For the safety and security of associates, customers and company resources, we have installed video cameras for surveillance of public areas in our buildings and on our property. Associates should have no expectation of privacy in these public areas.

Safety

It is the intent of RC Willey to provide a safe environment for all associates and customers. If an associate observes any obstruction that may present a hazard, the associate is responsible for eliminating that obstruction. Associates should notify their supervisor immediately if they observe a possible hazard they cannot remedy.

All associates required to use any type of material handling equipment for all or a portion of their job duties must complete the required certification training on the equipment within 15 days of being employed or transferred to a new position. This includes passing the written and equipment handling evaluations. Associates who have not been certified to operate a certain type of material handling equipment or instructed in the use of a hazardous material are strictly prohibited from operating or using it.

Firearms and other lethal weapons are not permitted in any RC Willey building or any company vehicle. Security may carry firearms as part of their normal job assignment. Associates wishing to carry pepper spray or other non-lethal protective devices must keep them concealed at all times while in an RC Willey building.

Building Evacuation

If you hear a fire alarm, all associates and customers should proceed to the nearest exit in an orderly manner and follow instructions given by supervisors. The Manager-on-Duty in charge of each facility is responsible for determining whether the alarm is a drill or a real emergency. Associates should assemble in the parking lot until everyone has been accounted for. Associates should also be aware of customers requiring assistance in evacuating the building.

Each location has exits marked. Associates should become familiar with the exit(s) nearest their workstation. Associates should contact their supervisor if they have any questions.

Associate Incidents/Injuries

Associates are responsible to report to their manager or supervisor any incident that results in an injury while on the job immediately. An “Associate Incident Injury Statement,” found on the HR website, should be completed by the associate for every incident resulting in an injury, regardless of whether the associate gets medical treatment or not. If an associate does need medical attention then the form should be printed and sent with the associate to complete and bring back. A supervisor or manager should complete the Incident / Injury Manager Report, also found on the HR website, when an associate is seeking medical treatment. Both forms should be submitted to the Claims Supervisor immediately after completion. In order to address any safety issues that may be present it is important for managers to investigate all incidents that occur in their department. Check the surveillance cameras in the area to see if there is any coverage of the incident. If there is a safety hazard, note it on the manager report and inform your local loss prevention person.

When an associate is injured and medical attention is required, it is important to use the facilities approved by RC Willey or your predesignated physician. The associate’s supervisor will have a list of clinics to use. In life-threatening situations, it is important to go to the nearest emergency room. When accidents or injuries occur that require medical attention, the injured associate may be required to take a drug screen.

Associates who have not predesignated a personal physician for worksite injuries and who see another doctor or clinic other than those approved by RC Willey’s workers’ compensation carrier run the risk of having medical payments denied.

In cases where associates cannot work, it is important for the injured associate to follow the treatment program prescribed by the doctor and provide the company with periodic updates concerning progress toward returning to work. When the doctor gives physical restrictions, temporary light duty may be provided when reasonably available.

RC Willey requires associates to practice safe work habits including: proper lifting, wearing harness and tethers on lifts (mandatory), safe use of tools and equipment, etc. Failure to follow safety procedures will result in disciplinary action up to and including termination.

Customer Accidents/Injuries

If there is an accident or injury involving a customer, notify a store manager or manager-on-duty immediately. Print the “Customer Incident/Injury Report” from the HR website and give the form to the customer to complete. You can provide them with a copy if they request it. The responding manager should complete the “Customer Incident / Injury Manager Report,” also found on the HR website. Fax or e-mail both forms to the Claims Supervisor immediately after completion. In order to address any safety issues that may be present it is important for managers to investigate all incidents that occur in their department. If there is a safety hazard, note it on the manager report and inform your local loss prevention person. Take photos of the scene and check surveillance cameras in the area to see if there is any coverage of the accident.

It is important that associates are attentive and responsive to customers injured on our premises. If medical attention is needed, instruct the customer that they may go to their own doctor or clinic. Do not direct injured customers to a specific clinic or doctor.

In any life-threatening situation, call 911 immediately!

Drug and Alcohol Policy

Purpose

The use of illegal drugs and alcohol misuse by associates are inconsistent with the commitment of RC Willey to provide a safe, healthy, secure and productive work environment. Associates who use illegal drugs and misuse alcohol may have a number of work-related problems such as increased accidents and injuries, excessive absenteeism and tardiness, lower productivity, missed deadlines, and poor work quality. Equally important, the use of illegal drugs and alcohol misuse can also result in a number of personal health and behavioral problems.

Information about the dangers of drug abuse and alcohol misuse, sources of help for drug and alcohol problems, including the Company’s Employee Assistance Program (“EAP”), this policy, and the consequences that may result from violations of this policy, is available from Human Resources.

Scope of Policy

This policy applies to all applicants and associates, who must comply with this policy as a condition of their employment. This policy supersedes any prior policy as well as any other written or oral statements or representations by the Company that are inconsistent with the policy. The Company reserves the right to revise, supplement or rescind this policy in its discretion in accordance with the requirements of applicable law or for any other lawful reason. This policy does not alter the at-will nature of employment with the Company, nor does it restrict in any way the Company’s discretion to discipline associates or terminate the employment relationship at will.

Voluntary Requests for Assistance

The Company encourages associates with drug and alcohol problems to seek help before they become subject to discipline for violating this or other Company policies. The Company will support, assist and accommodate such associates to the extent required by applicable law. 

Associates will not be disciplined by the Company because they request assistance. Associates may not, however, escape discipline by requesting assistance after they violate the Company’s policies or are notified of their selection for drug or alcohol testing. In addition, associates who request assistance will not be excused from complying with the Company’s policies, including its standards for employee performance and conduct. Human Resources can assist associates in a confidential manner, by referring them to the EAP, providing them with information about low to no cost community and other resources for evaluation, counseling, and treatment, and helping them utilize any available associate benefits. Any deductibles, co-pays or costs for participating in any program will be at the associate’s expense.

Definitions

“Adulterated specimen” means a specimen that has been altered, as evidenced by test results showing either a substance that is not normally present in the specimen or showing an abnormal concentration of a substance that is normally present in the specimen.

“Alcohol” means the intoxicating agent in beverage alcohol or any low molecular weight alcohols such as ethyl, methyl or isopropyl alcohol. The term includes beer, wine, spirits and medications such as cough syrup that contain alcohol.

“Company premises” include, but are not limited to, all land, property, buildings, offices, facilities, grounds, parking lots, and places owned, leased, managed or used by the Company.

“Company vehicle” means all vehicles owned, leased or used by the Company and all vehicles that are used by associates, regardless of who owns or leases them, while working for the Company.

“Dilute specimen” means a urine specimen that has creatinine and specific gravity values that are lower than expected for human urine.

“Illegal drugs” mean all controlled substances, designer drugs, synthetic drugs, and other drugs not placed in a schedule by the federal government that are not being used or possessed under the supervision of a licensed health care professional or that are not being used in accordance with the licensed health care professional’s prescription. (Controlled substances are listed in Schedules I-V of 21 U.S.C. § 812 and 21 C.F.R. Part 1308.)

“Inhalants” mean gases and volatile compounds such as glue, nitrous oxide, gasoline or solvents that are inhaled intentionally to produce feelings of intoxication, euphoria or stupefaction.

“Medical Review Officer” is a licensed physician who has knowledge, training, and clinical experience regarding substance abuse disorders and who will, among other things, review applicants’ and associates’ positive drug test results and evaluate any medical explanations for such results.

“Refuse to cooperate” means refusing to take a drug or alcohol test, not promptly proceeding directly to a collection site when told to do so, failing to remain at a testing site until the testing process is complete, attempting to provide or providing an adulterated or substituted specimen, failing to provide sufficient specimens, failing to sign testing and other required forms, and any other conduct that disrupts or interferes with the collection and testing process.

“Substituted specimen” means a urine specimen that has creatinine and specific gravity values that are so diminished or divergent that they are not consistent with human urine.

“Test positive for alcohol” means to take an alcohol test that results in an alcohol concentration of .04 or more.

“Test positive for drugs” means to take a drug (5 panel) test that results in a concentration of marijuana, cocaine, opiates, amphetamines, and phencyclidine, or their metabolites, that is equal to or exceeds the cutoff levels that are set forth in 49 C.F.R. Part 40 for DOT testing. For non-DOT testing a test positive for drugs means to take a drug test that results in a concentration of marijuana, cocaine, opiates, amphetamines, phencyclidine (or their metabolites) that is equal to or exceeds the cutoff levels that are set forth in 49 C.F.R. Part 40 for DOT testing and barbiturates, benzodiazepines, methadone and propoxyphene (or their metabolites) that is equal to or exceeds the cutoff level of 300 ng/ml. Other tests for substances may also be conducted as dictated by individual circumstances in accordance with the requirements of applicable law.

“Under the influence” means to test positive for drugs or alcohol or an associate’s actions, appearance, speech or bodily odors that reasonably cause the Company to conclude that the associate is impaired because of illegal drug use or alcohol misuse.

Work Rules for Drugs and Alcohol

Whenever associates are working, operating Company vehicles, machinery or equipment, present on Company premises, or present in any other location performing services for the Company, they are prohibited from using, possessing, buying, selling, manufacturing, distributing, dispensing or transferring illegal drugs or drug paraphernalia; being under the influence of illegal drugs, alcohol, or inhalants; possessing or consuming alcohol; and inhalants.

Associates should report to work fit for duty and free of any adverse effects of illegal drugs, alcohol, or inhalants.

This policy does not prohibit associates from the lawful possession and use of over-the-counter and prescribed medications. Associates have the responsibility to consult with their doctors or other licensed medical practitioners about the effect of over-the-counter and prescribed medications on their ability to perform their specific job duties in a safe manner, and to promptly disclose any work restrictions to their supervisors or Human Resources. Associates should not, however, disclose underlying medical conditions, impairments or disabilities to their supervisors or Human Resources unless specifically directed to do so by their doctors or other licensed medical practitioners.

Even though the Company accommodates the use of controlled substances that associates may take lawfully, we want to be clear: the Company is not required to, and will not accommodate the use of marijuana in the workplace, or working with any detectable amount of marijuana in your system, even if state law permits recreational use, or even if it’s recommended or prescribed to you by a licensed health care provider.

Testing

Pre-employment: All applicants who have received a conditional offer of employment must pass a drug test before they are hired by and/or begin working for the Company.

Reasonable suspicion: Associates are subject to drug and/or alcohol testing if the Company reasonably suspects them of using, possessing, or being under the influence of alcohol or illegal drugs while they are working, operating Company vehicles, machinery or equipment, present on Company premises, or present in any other location performing services for the Company.

Post-accident: Associates may be subject to drug and/or alcohol testing when the Company reasonably believes that the associate was impaired and that they may have caused a work-related accident that results in an injury to the associate (or to others) that requires off-site medical treatment or damage to Company vehicles, machinery, equipment, or other property. Associates must notify their supervisors or Human Resources as soon as safely possible after any accident, regardless of the severity. This includes any accident that involves Company vehicles, machinery, equipment, or property.

Random: Each calendar year, a certain percentage of the Company’s associates who hold safety-sensitive positions will be subject to random drug and/or alcohol testing. The tests will be unannounced, spread throughout the year, and the selection of associates will be made by a scientifically valid method.

Change in position: Associates will be required to submit to a drug test if they are promoted or transferred to a safety-sensitive position.

Summary of Alcohol Collection and Testing Procedures

The Company will follow the general collection and testing procedures set forth below:

Associates shall be sent or transported to a Company designated collection site where they shall be required to verify their identity and cooperate in the site’s normal specimen collection procedures.

The collection and testing will be conducted, in private, by a trained technician who will use approved testing devices and testing forms. Chain of custody procedures shall be maintained from collection to the time specimens may be discarded to ensure proper identification, labeling, recordkeeping, handling and testing of specimens. A screening test will be conducted first. If the associate’s screen test result is less than .02, the associate will have passed the test.

If the associate’s measured alcohol concentration is .02 or more, the associate shall be required to take a confirmation test. The results of the confirmation test, not the screen test, are determinative. If the associate’s confirmation test result is less than .04, the associate will have passed the test. If the associate’s confirmation test result is .04 or more, the associate will have tested positive for alcohol.

The technician will notify the Company of the associate’s test results in a confidential manner. The Company will notify applicants or associates of their test results.

Summary of Drug Collection and Testing Procedures

The Company will follow the general collection and testing procedures set forth below:

Applicants and associates shall be sent or transported to a Company designated collection site where they shall be required to verify their identity and otherwise cooperate in the site’s normal specimen collection procedures. Applicants and associates will have the opportunity to disclose any over-the-counter or prescribed medications that they are using or have recently used, or any other information, medical or otherwise, that they think may be relevant to the testing.

Specimens shall be collected, in private, by a trained collection site person who will use approved collection containers and custody and control forms. Chain of custody procedures shall be maintained from collection to the time specimens may be discarded to ensure proper identification, labeling, recordkeeping, handling and testing of specimens.

Applicants must provide a sample within three hours of notification. Those who fail to do so will be subject to the same consequences as those with a positive test. Documented medical conditions will be taken into consideration by the Medical Review Officer (“MRO”).

When any specimen given by an applicant is deemed to be outside the acceptable temperature range by the collector the applicant shall have their employment offer rescinded. For currently employed associates, the associate shall immediately produce a second sample for testing. If the associate refuses to provide a second sample or if the second sample is deemed outside the acceptable temperature range the associate will be subject to disciplinary action up to and including termination.

Laboratory Testing

Collected specimens shall be tested by a certified laboratory. For DOT testing, the laboratory shall test specimens for marijuana, cocaine, opiates/opioids, amphetamines, and phencyclidine (5 panel DOT test) and such other controlled substances as may be dictated by the circumstances in accordance with the requirements of applicable law.

For non-DOT testing, the laboratory shall test for marijuana, cocaine, opiates, amphetamines, phencyclidine, barbiturates, benzodiazepines, methadone and propoxyphene (9 or 10panel test) and such other substances as may be dictated by the circumstances in accordance with the requirements of applicable law. The laboratory shall first conduct a screen on the specimen. If the screen test is negative, the laboratory will report to the Company that the applicant or associate has passed the drug test. If the screen test is positive, the laboratory will analyze the applicant’s or associate’s specimen using gas chromatography/mass spectrometry. The laboratory will send the test results to the MRO.

The MRO is responsible for ensuring the accuracy and integrity of the drug testing process. If an applicant or associate has a confirmed positive, adulterated, substituted or invalid drug test result, the MRO will contact the applicant or associate by telephone at the numbers listed on the custody and control form. Applicants and associates should promptly cooperate with the MRO.

The MRO shall advise the Company if an applicant or associate has passed or failed the test, refused to cooperate, if a specimen is diluted, or if a test should be canceled. If the MRO determines that there is a legitimate medical explanation for a positive, adulterated, or substituted test result, the MRO will report a negative test result to the Company. If the applicant or associate does not provide a legitimate medical explanation for a positive test result, the MRO will verify the test result as positive. If the applicant or associate does not provide a legitimate medical explanation for an adulterated or substituted test result, the MRO will report to the Company that the applicant or associate has refused to take a drug test. Invalid test results will be canceled and, depending on the circumstances, may subject an applicant or associate to additional testing.

If a specimen is determined to be dilute after a second test is conducted, the applicant shall have their offer of employment voided. In the event a current associate has two tests indicating a diluted specimen, the associate’s employment will be reviewed with the Company with termination a possible result.

The Company will notify applicants and associates of their positive test results.

Inspections

The Company reserves the right to inspect all parts and aspects of its premises for illegal drugs, drug paraphernalia, alcohol or other contraband. All associates and visitors may be asked to cooperate in inspections of their persons, work areas and property (such as purses, wallets, tool boxes, lunch boxes, backpacks, water coolers, thermos bottles, flasks, briefcases, desks, cabinets, lockers or cars) that might conceal illegal drugs, drug paraphernalia, alcohol or other contraband when there is reason to believe you may have violated any company policy. Associates are expected to cooperate in the conduct of such searches.

Consequences of a Refusal or Positive Test

Applicants who refuse to cooperate in a drug test or who test positive for drugs will not be hired by the Company. Associates who refuse to cooperate in a lawfully requested drug and/or alcohol test will have their employment terminated. Any applicant or associate, who refuses to sign the necessary consent forms, will have their employment offer voided or their employment terminated.

Associates who test positive for drugs and/or alcohol or who otherwise violate this policy will be subject to appropriate disciplinary action up to and including, termination of employment. Depending on the circumstances, an associate’s return to work, reinstatement, and/or continued employment may be conditioned on the associate’s successful participation in and/or completion of any and all evaluations, counselings, treatments, and rehabilitation programs, passing of return-to-duty and follow-up tests, and/or other appropriate conditions as determined by the Company.

The Company may take disciplinary and/or other appropriate action when an associate engages in any conduct or is involved in any crime (drug related or other) that damages the Company’s operations or reputation.

Records and Confidentiality

Information and records relating to test results and other medical information shall be kept confidential and maintained in files separate from associates’ personnel files. Such records and information may be disclosed to applicants and associates, any third party designated in writing by an applicant or an associate, the MRO, the EAP, a substance abuse professional, physician or other health care provider responsible for determining an associate’s ability to safely perform his/her job and/or the associate’s successful participation in and/or completion of any and all evaluations, counselings, treatments and rehabilitation programs, to and among the Company’s supervisors on a need to know basis, where relevant to the Company’s defense in a grievance, arbitration, administrative proceeding, lawsuit or other legal proceeding, or as required or otherwise permitted by law.

Criminal Convictions

The Company may take disciplinary and/or other appropriate action when an associate engages in any conduct or is involved in any crime that damages the Company’s operations or reputation.

Berkshire Hathaway Inc.

Prohibited Business Practices (Click For Document)

Code of Business Conduct and Ethics

1. Scope.
   This Code of Business Conduct and Ethics applies to all Berkshire Hathaway directors, officers and employees, as well as to directors, officers and employees of each subsidiary of Berkshire Hathaway. Such directors, officers and employees are referred to herein collectively as the “Covered Parties.” Berkshire Hathaway and its subsidiaries are referred to herein collectively as the “Company.”
2. Purpose.
   

   The Company is proud of the values with which it conducts business. It has and will continue to uphold the highest levels of business ethics and personal integrity in all types of transactions and interactions. To this end, this Code of Business Conduct and Ethics serves to (1) emphasize the Company’s commitment to ethics and compliance with the law; (2) set forth basic standards of ethical and legal behavior; (3) provide reporting mechanisms for known or suspected ethical or legal violations; and (4) help prevent and detect wrongdoing.

   Given the variety and complexity of ethical questions that may arise in the Company’s course of business, this Code of Business Conduct and Ethics serves only as a rough guide. Confronted with ethically ambiguous situations, the Covered Parties should remember the Company’s commitment to the highest ethical standards and seek advice from supervisors, managers or other appropriate personnel to ensure that all actions they take on behalf of the Company honor this commitment. When in doubt, remember Warren Buffett’s rule of thumb:

   “…I want employees to ask themselves whether they are willing to have any contemplated act appear the next day on the front page of their local paper – to be read by their spouses, children and friends – with the reporting done by an informed and critical reporter.”

3. Ethical Standards.
   

   1. Conflicts of Interest

   A conflict of interest exists when a person’s private interest interferes in any way with the interests of the Company. A conflict can arise when a Covered Party takes actions or has interests that may make it difficult to perform his or her work for the Company objectively and effectively. Conflicts of interest may also arise when a Covered Party, or members of his or her family, receive improper personal benefits as a result of his or her position at the Company. Loans to, or guarantees of obligations of, Covered Parties and their family members may create conflicts of interest. It is almost always a conflict of interest for a Covered Party to work simultaneously for a competitor, customer or supplier.

   Conflicts of interest may not always be clear-cut, so if you have a question, you should consult with your supervisor or manager or, if circumstances warrant, the chief financial officer or chief legal officer of the Company. Any Covered Party who becomes aware of a conflict or potential conflict should bring it to the attention of a supervisor, manager or other appropriate personnel or consult the procedures described in Section E of this Code.

   All directors and executive officers of the Company, and the chief executive officers and chief financial officers of Berkshire Hathaway’s subsidiaries, shall disclose any material transaction or relationship that reasonably could be expected to give rise to such a conflict to the Chairman of the Company’s Audit Committee. No action may be taken with respect to such transaction or party unless and until such action has been approved by the Audit Committee.

   2. Corporate Opportunities.

   Covered Parties are prohibited from taking for themselves opportunities that are discovered through the use of corporate property, information or position without the consent of the Board of Directors of the Company. No Covered Party may use corporate property, information or position for improper personal gain, and no employee may compete with the Company directly or indirectly. Covered Parties owe a duty to the Company to advance its legitimate interests whenever possible.

   3. Fair Dealing.

   Covered Parties shall behave honestly and ethically at all times and with all people. They shall act in good faith, with due care, and shall engage only in fair and open competition, by treating ethically competitors, suppliers, customers, and colleagues. Stealing proprietary information, possessing trade secret information that was obtained without the owner’s consent, or inducing such disclosures by past or present employees of other companies is prohibited. No Covered Party should take unfair advantage of anyone through manipulation, concealment, abuse of privileged information, misrepresentation of material facts, or any other unfair practice.

   The purpose of business entertainment and gifts in a commercial setting is to create good will and sound working relationships, not to gain unfair advantage with customers. No gift or entertainment should ever be offered or accepted by a Covered Party or any family member of a Covered Party unless it (1) is consistent with customary business practices, (2) is not excessive in value, (3) cannot be construed as a bribe or payoff and (4) does not violate any laws or regulations. The offer or acceptance of cash gifts by any Covered Party is prohibited. Covered Parties should discuss with their supervisors, managers or other appropriate personnel any gifts or proposed gifts which they think may be inappropriate.

   4. Insider Trading.

   Covered Parties who have access to confidential information are not permitted to use or share that information for securities trading purposes (“insider trading”) or for any other purpose except the conduct of the Company’s business. All non-public information about the Company should be considered confidential information. It is always illegal to trade in Berkshire Hathaway securities while in possession of material, non-public information, and it is also illegal to communicate or “tip” such information to others. While all Covered Parties are prohibited from insider trading, Berkshire has adopted specific “Insider Trading Policies and Procedures” applicable to the Company’s directors, executive officers and key employees (“Directors and Covered Employees”). This document is posted on Berkshire’s website and is sent periodically to Directors and Covered Employees in connection with certification of compliance.

   5. Confidentiality.

   Covered Parties must maintain the confidentiality of confidential information entrusted to them, except when disclosure is authorized by an appropriate legal officer of the Company or required by laws or regulations. Confidential information includes all non-public information that might be of use to competitors or harmful to the Company or its customers if disclosed. It also includes information that suppliers and customers have entrusted to the Company. The obligation to preserve confidential information continues even after employment ends.

   6. Protection and Proper Use of Company Assets.

   All Covered Parties should endeavor to protect the Company’s assets and ensure their efficient use. Theft, carelessness, and waste have a direct impact on the Company’s profitability. Any suspected incident of fraud or theft should be immediately reported for investigation. The Company’s equipment should not be used for non-Company business, though incidental personal use is permitted.

   The obligation of Covered Parties to protect the Company’s assets includes its proprietary information. Proprietary information includes but is not limited to intellectual property such as trade secrets, patents, trademarks, and copyrights, as well as business, marketing and service plans, engineering and manufacturing ideas, designs, databases, records, salary information and any unpublished financial data and reports. Unauthorized use or distribution of this information would violate Company policy. It could also be illegal and result in civil or criminal penalties.

   7. Compliance with Laws, Rules and Regulations.

   Obeying the law, both in letter and in spirit, is the foundation on which the Company’s ethical standards are built. In conducting the business of the Company, the Covered Parties shall comply with applicable governmental laws, rules and regulations at all levels of government in the United States and in any non-U.S. jurisdiction in which the Company does business. Although not all Covered Parties are expected to know the details of these laws, it is important to know enough about the applicable local, state and national laws to determine when to seek advice from supervisors, managers or other appropriate personnel.

   The document “Prohibited Business Practices Policy” sets forth the Company’s policy on compliance with laws, specifically addressing such topics as prohibited offers or payments, gifts and entertainment, transactions with certain countries and persons, accounting controls, and accurate record-keeping. This Policy is furnished to senior managers and available to all employees.

   8. Timely and Truthful Public Disclosure.

   In reports and documents filed with or submitted to the Securities and Exchange Commission and other regulators by the Company, and in other public communications made by the Company, the Covered Parties involved in the preparation of such reports and documents (including those who are involved in the preparation of financial or other reports and the information included in such reports and documents) shall make disclosures that are full, fair, accurate, timely and understandable. Where applicable, these Covered Parties shall provide thorough and accurate financial and accounting data for inclusion in such disclosures. They shall not knowingly conceal or falsify information, misrepresent material facts or omit material facts necessary to avoid misleading the Company’s independent public auditors or investors.

   9. Significant Accounting Deficiencies.

   The CEO and each senior financial officer shall promptly bring to the attention of the Audit Committee any information he or she may have concerning (a) significant deficiencies in the design or operation of internal control over financial reporting which could adversely affect the Company’s ability to record, process, summarize and report financial data or (b) any fraud, whether or not material, that involves management or other employees who have a significant role in the Company’s financial reporting, disclosures or internal control over financial reporting.

4. Waivers.
   

   Any waiver of this Code for executive officers or directors may be made only by the Company’s Board of Directors or its Audit Committee and will be promptly disclosed as required by law or stock exchange regulation.

5. Violations of Ethical Standards.
   

   1. Reporting Known or Suspected Violations.

   The Company’s directors, CEO, senior financial officers and chief legal officer shall promptly report any known or suspected violations of this Code to the Chairman of the Company’s Audit Committee. All other Covered Parties should talk to supervisors, managers or other appropriate personnel about known or suspected illegal or unethical behavior. These Covered Parties may also report questionable behavior in the same manner as they may report complaints regarding accounting, internal accounting controls or auditing matters by contacting (anonymously, if desired) a third party organization called NAVEX Global (toll-free number 800-261-8651 or web site at http://brk-hotline.com). Separate anonymous reporting procedures are available for Company employees working outside the United States. No retaliatory action of any kind will be permitted against anyone making such a report in good faith, and the Company’s Audit Committee will strictly enforce this prohibition.

   2. Accountability for Violations.

   If the Company’s Audit Committee or its designee determines that this Code has been violated, either directly, by failure to report a violation, or by withholding information related to a violation, the offending Covered Party may be disciplined for non-compliance with penalties up to and including removal from office or dismissal. Such penalties may include written notices to the individual involved that a violation has been determined, censure by the Audit Committee, demotion or re-assignment of the individual involved and suspension with or without pay or benefits. Violations of this Code may also constitute violations of law and may result in criminal penalties and civil liabilities for the offending Covered Party and the Company. All Covered Parties are expected to cooperate in internal investigations of misconduct.

6. Compliance Procedures.
   

   We must all work together to ensure prompt and consistent action against violations of this Code. In some situations, however, it is difficult to know if a violation has occurred. Because we cannot anticipate every situation that will arise, it is important that we have a way to approach a new question or problem. These are the steps to keep in mind:

   Make sure you have all the facts. In order to reach the right solutions, we must be as informed as possible.

   Ask yourself: What specifically am I being asked to do? Does it seem unethical or improper? Use your judgment and common sense. If something seems unethical or improper, it probably is.

   Clarify your responsibility and role. In most situations, there is shared responsibility. Are your colleagues informed? It may help to get others involved and discuss the problem.

   Discuss the problem with your supervisor. This is the basic guidance for all situations. In many cases, your supervisor will be more knowledgeable about the questions, and he or she will appreciate being consulted as part of the decision-making process.

   Seek help from Company resources. In rare cases where it would be inappropriate or uncomfortable to discuss an issue with your supervisor, or where you believe your supervisor has given you an inappropriate answer, discuss it locally with your office manager or your human resources manager.

   You may report ethical violations in confidence without fear of retaliation. If your situation requires that your identity be kept secret, your anonymity will be protected to the maximum extent consistent with the Company’s legal obligations. The Company in all circumstances prohibits retaliation of any kind against those who report ethical violations in good faith.

   Ask first, act later. If you are unsure of what to do in any situation, seek guidance before you act.

RC Willey Home Furnishings Measurement Method Policy to Determine Full-time Employee Status under the Employer Shared Responsibility

RC Willey Home Furnishings is a large employer under Employer Shared Responsibility provisions of the Affordable Care Act (ACA). RC Willey Home Furnishings offers health benefits to full-time employees that are affordable and meet minimum value. A full-time employee is defined as one who works an average of at least 30 hours per week or 130 hours per month.

The ACA requires large employers to select a measurement method to determine:

• The full-time status of employees
• If the employer must offer coverage to an employee
• For which months the employer must offer coverage
• For which employees an employer may be subject to potential penalties for not offering coverage.

This policy specifies the Measurement Methods RC Willey Home Furnishings has selected, the categories of employees to which the selections apply, the length of the Look-back Measurement Method periods, and the treatment of employees upon return from paid or unpaid leave.

Section 1: Categories of Employees to Whom the Monthly Measurement Method or Look-Back Measurement Method Applies

The measurement method selected for a category of employees applies to all employees in that category, whether they work full-time, part-time, have variable hours or are seasonal employees.

1.A. The General Rule

Starting August 1, 2014, RC Willey Home Furnishings will use the Look Back Measurement Method for ALL categories of employees.

1.B. The Exception to the General Rule: Newly-Hired Employees Reasonably Expected to Work Full-time

For new-hires who are reasonably expected at date of hire to be full-time employees, RC Willey Home Furnishings will temporarily track hours using the Monthly Measurement Method (even though the Look-Back Measurement Method would otherwise apply), and will offer health coverage that will be effective no later than the first day of the month following 60 days of eligible employment.

RC Willey Home Furnishings will continue to track hours of the new employee (who is reasonably expected to work full time) on a monthly basis until the new employee becomes an “ongoing” employee. On the first day of the first STANDARD Measurement period after hire, the employee’s hours will also be tracked using the Standard Look Back Measurement method. Specifically,

• On first day of work, employee’s hours will be tracked using the Monthly Measurement Method.
• On first day of the first Standard Measurement Period after date of hire, an employee’s hours will also be tracked using the (Standard) Look Back Measurement Method.
• The employee’s hours will continue to be tracked using both the Monthly Measurement Method and the Look Back Measurement Method until the last day of the first Standard Measurement Period after hire.
• On the last day of the first Standard Measurement Period after hire, the new employee becomes an “ongoing” employee.
• When the new employee becomes an “ongoing” employee, the employee’s hours will be tracked using only the Look Back Measurement Method. The Monthly Measurement Method will no longer be used for this employee.

1.C. Seasonal Employees

A seasonal employee for purposes of this policy is defined as one in a position for which the customary annual employment is six months or less. “Customary” means an employee who typically works each calendar year in approximately the same part of the year, such as summer or winter.

If RC Willey Home Furnishings hires an employee who falls within the definition of a Seasonal employee, the employee, whether or not expected to work full time at the time of hire, will be treated differently from other newly hired employees reasonably expected to work full time. When newly hired, the seasonal employee will have his or her hours tracked using the Measurement Method RC Willey Home Furnishings elected under Section 1.A.

1.D. Employer Discretion to Change Measurement Method and Period Elections for Future Years

For future years, RC Willey Home Furnishings may change the categories of employees for whom it will apply the Monthly Measurement Method or the Look Back Measurement Method, or may elect to use a Look Back Measurement Period, Administrative Period or Stability Period of a different length or with a different start date than indicated above. However, that election to change methods will be effective only as of the first day of a Standard Measurement Period, and not in the middle of a measurement cycle.

Section 2: Monthly Measurement Method

2.A. The measurement period for the Monthly Measurement method will be the calendar month. This method applies (temporarily) to new-hires who at the time of hire are reasonably expected to be full time. RC Willey Home Furnishings will track hours each calendar month under the Monthly Measurement Method by counting “hours of service” (hours actually worked and hours for which the employees is paid even though not actively at work) from first of the month through the last day of the month.

An employee who at the time of hire is reasonably expected to be full time will be eligible for coverage effective no later than the first day of the month following 60 days of eligible employment as described in Section 1.B. If thereafter, an employee continues to work at least 130 hours of service within each month, the employee will remain eligible for coverage through the Monthly Measurement Method.

If an employee who is enrolled in the employer’s group health plan and whose hours are being tracked using the Monthly Measurement Method, works fewer than 130 hours per month for two consecutive calendar months may cease to be eligible as of the first day of the next calendar month, but may become eligible again under this method if hours increase to at least 130 within a subsequent month(s).

Section 3: Look-Back Measurement Method

3.A. General Definitions Applicable to Look-Back Measurement Method:

• Measurement Period - A period of 12 months wherein employee hours are tracked in order to identify the average hours worked.
• Administrative Period – A period of time, usually between the Measurement Period and Stability period, to calculate employee hours tracked during the Measurement Period, identify full-time employees, communicate with eligible employees, and process enrollments/terminations. The STANDARD administrative period will be 2 months and the INITIAL administrative period will be 1 and a partial month.
• Stability Period – A period of 12 months during which employees who were identified as averaging at least 130 hours per month during the Measurement Period are eligible for coverage.
• Standard Measurement/Administrative/Stability Periods – used for ongoing employees.
• Initial Measurement/Administrative/Stability Periods – used for newly hired employees unless the employee at the time of hire is reasonably expected to work full time, as explained in Section 1.B.

3.B. Ongoing Employees

RC Willey Home Furnishings has made the following elections regarding the Measurement, Administrative and Stability Periods in the STANDARD Look-Back Measurement Method for ONGOING employees:

• RC Willey Home Furnishings has opted to use a 12 month Standard Measurement Period starting on August 1, 2014 and ending on July 31, 2015. This will repeat each year.
• RC Willey Home Furnishings has opted to use a 2 month Standard Administrative Period starting on August 1, 2015 and ending on September 30, 2015. This will repeat each year.
• RC Willey Home Furnishings has opted to use a 12 month Standard Stability Period starting on October 1, 2015 and ending on September 30, 2016. This will repeat each year.

The Standard Measurement/Administrative/Stability periods will continuously repeat. For example, when the Standard Measurement Period starting August 1, 2014 ends on July 31, 2015, a new Standard Measurement Period will start August 1, 2015.

3.C. New Hires

1) New Hires Who Are Reasonably Expected to Work Full-time:

As described in Section 1.B., until a newly hired full-time employee who is reasonably expected at date of hire to work full-time becomes an ongoing employee, the Look Back Measurement Method will not be used. RC Willey Home Furnishings will temporarily track these employee hours using the Monthly Measurement Method even though the Look-Back Measurement Method would otherwise apply, and will offer coverage on: first day of the month following 60 days of eligible employment. RC Willey Home Furnishings will continue to track hours on a Monthly basis using the Monthly Measurement Method until the new employee becomes an “ongoing” employee as described in Section 1.B.

2) All Other New Hires, NOT Reasonably Expected to Work Full-time:

RC Willey Home Furnishings has made the following elections regarding the Measurement, Administrative and Stability Periods for the INITIAL Look-Back Measurement Method for NEWLY HIRED employees who at the time of hire are not reasonably expected to work full-time including those who meet the seasonal employee definition under Section 1.C.

• Initial Measurement Period: RC Willey Home Furnishings has opted to use a 12 month Initial Measurement Period which will begin the first day of the month after the newly hired employee starts working.
• Initial Administrative Period (split): RC Willey Home Furnishings has opted to use a 1 month (plus a partial month) Initial Administrative Period which will be split into two parts. Part 1 is a partial month beginning on date of hire and ending on the last day of the month, the day before the Initial Measurement Period begins (e.g., if employee starts working March 10, Part 1 of the Initial Administrative Period would be March 10 to March 31). Part 2 is the full month immediately after the last day of the Initial Measurement Period but before the Initial Stability Period begins.
• Initial Stability Period: RC Willey Home Furnishings has opted to use a 12 month Initial Stability Period which will start immediately after the associated Initial Administrative Period ends. Health coverage will be offered to employees whose hours averaged 130 hours or more per month during the associated Initial Measurement Period. Coverage will be effective on the first day of the Initial Stability Period and will continue the full 12 months, even if hours fall below the threshold during those 12 months.

The combined passage of time between a newly hired employee’s start date and the date the newly hired employee is offered health coverage (if eligible) will not exceed more than 13 months, plus an additional partial month. In other words, the Initial Measurement Period and the Initial Administrative Period combined will not exceed 13 months, plus an additional partial month.

In addition to tracking hours through the Initial Measurement Period, new hires will also have their hours tracked through the first Standard Measurement Period that starts after the date of hire, i.e. for a limited period of months, both the Initial Look Back and the Standard Look Back Measurement Methods will be used at the same time. After one full Initial Measurement/Administrative/Stability period is complete, a newly hired employee becomes an ongoing employee. RC Willey Home Furnishings will stop using the Initial Measurement period and continue tracking hours using only the Standard Measurement Period.

Section 4: Treatment of Employees Who Leave and then Return to Work Under Both the Monthly Measurement Method and Look-Back Measurement Method

4.A. Employees Returning from Paid Leave

When using the Look Back Measurement Method and/or the Monthly Measurement Method to track employee hours, an employee’s “hours of service” will include hours of paid leave (e.g., sick or vacation time) used by an employee during a Month or during a Look Back Measurement Period even though the employee did not actually work those hours.

4.B. Employees Returning from Regular Unpaid Leave
This section explains how, under the Measurement Methods, RC Willey Home Furnishings will determine whether employees returning from unpaid leave are identified as “ongoing employees” or “newly- hired employees.”

4.B.i. Determining Employee Status Upon Return from Regular Unpaid Leave

• RC Willey Home Furnishings is using The Rule of Parity to determine whether the returning employee is still an “ongoing” employee or whether the employee should be identified as a “newly hired” employee.
  • Unpaid Leave for More than 13 Weeks: An employee who returns from unpaid leave of more than 13 consecutive weeks will be considered a newly hired employee upon return to work and hours will be measured using the Initial Look Back Method.
  • EXCEPTION: See Section 1.B for special temporary treatment of a newly hired employee reasonably expected to work full time upon return to work.
  • Unpaid Leave for 4 Weeks or Less: An employee who returns from unpaid leave of not more than 4 consecutive weeks will be considered an ongoing employee upon return to work and will be placed back in the Standard Measurement and Stability Period he/she was in before the break
  • Unpaid Leave for between 4-13 Weeks:
    • EXCEPTION: See Section 1.B for special temporary treatment of a Newly Hired employee reasonably expected to work full time upon return to work.
  • Considered a newly hired employee: If the number of unpaid weeks is greater than the number of weeks worked prior to the unpaid absence: employee is considered newly hired and hours will be measured using the Initial Measurement Period beginning on the date the employee has at least one paid hour of work after returning from unpaid leave.
• For employees whose hours are currently measured using the Look-Back Measurement Method:

• Considered an ongoing employee: If the number of unpaid weeks is less than the number of weeks worked prior to the unpaid absence: employee will be considered an ongoing employee and will be placed back in the Standard Measurement/Stability Period he/she was in before the break.
• For newly hired full time employees whose hours are currently measured using the Monthly Measurement Method pursuant to Section 1.B but will thereafter have hours tracked using the Look Back Measurement Method:
  • Considered a newly hired employee: If the number of unpaid weeks is greater than the number of weeks worked prior to the unpaid absence: employee is considered newly hired and hours will be measured under the Monthly Measurement Method beginning on the date the employee has at least one paid hour of work after returning from unpaid leave.
  • Considered an ongoing employee: If the number of unpaid weeks is less than the number of weeks worked prior to the unpaid absence, employee will be considered an ongoing employee and hours will be measured using the Monthly Measurement Method. However, because hours will be tracked using the Monthly Measurement Method, unless an employee returns within the same month the employer left, no prior service hours will be credited.
• Unpaid Leave for More than 13 Weeks: An employee who returns from unpaid leave of more than 13 consecutive weeks will be considered a newly hired employee upon return to work and hours will be measured using the Monthly Measurement Method.
• Unpaid Leave for 4 Weeks or Less: An employee who returns from unpaid leave of not more than four consecutive weeks will be considered an ongoing employee upon return to work and hours will be measured using the Monthly Measurement Method. However, because hours will be tracked using the Monthly Measurement Method, no prior service hours will be credited unless an employee returns within the same month the employer left.
• Unpaid Leave for between 4-13 Weeks:

Rule of Parity

Length of unpaid leave:

• More than 13 weeks
• Treat as a new hire, count only hours of service after return from leave.
• More than 4 weeks and up to 13 weeks
• Treat as an ongoing employee, if hours on leave are less than hours of service prior to leave.
• Treat as a new hire, if hours on leave are more than hours of service worked prior to leave.
• Not more than 4 weeks
• Treat as an ongoing employee, and count hours of service before and after the leave.

4.B.ii Determining Timing of Benefits Upon Return from Regular Unpaid Leave

• For Those Identified as an Ongoing Employee – If determined under 4.B.i to be an ongoing employee upon return, hours will be measured using the appropriate Measurement Method he/she was in before the break as described above
• If an employee returns to work and he/she is identified as a full-time employee (after calculating the average monthly hours worked during the appropriate Measurement Method), the employee will be offered coverage immediately (as soon as administratively feasible, and no later than the first day of the next month—there is no waiting period) and will be treated as a full-time employee through the end of the Standard Stability Period (if using the Look Back Measurement Method) or through the end of the month (if using the Monthly Measurement Method).
• If an employee returns to work and he/she is identified as a part-time employee (after calculating the average monthly hours worked during the appropriate Measurement Method), the employee need not be offered coverage immediately. Instead, the employer would continue to track hours and will calculate again at the end of the current measurement period to determine eligibility.
• For Those Identified as a Newly-Hired Employee – If determined under Section 4.B.i to be a newly-hired employee upon return, no prior hours of service will be credited. Hours will be measured using the appropriate Measurement Method for newly hired employees as described in Section 1 beginning on the date the employee had at least one paid hour of work after returning from the break.

4.C Employees Returning from Special Unpaid Leave

• FMLA or other “Special” Leave: An employee returning from “special unpaid leave” due to FMLA, military duty or jury duty will be considered an ongoing employee upon return, regardless of the amount of weeks absent, and the employee will be placed back in the applicable measurement method.

• Hours of service accumulated prior to the absence will be credited, and hours of service during the absence will also be credited, as if the employee had not been absent, based on average hours actually worked prior to absence. Note: It is only under “special unpaid leave” that an employee will be credited for hours of service for which the employee was not paid and was not at work. Employees on other types of unpaid leave will not receive credit for hours absent.

After calculating the average monthly hours worked during the appropriate measurement method, when an employee returns to work, if he/she is identified as a full-time employee, the employee will be offered coverage immediately (as soon as administratively feasible, and no later than the first day of the next month) and will be treated as a full-time employee through the end of the Standard Stability Period (if hours are being tracked under the Look Back Measurement Method) or through the end of the month (if hours are tracked under the Monthly Measurement Method).